Purchase order with every spec line on it
Then the letter of credit or the transfer, against the pro forma.
The purchase order carries every line of the yarn spec: count as singles and resultant, spinning system, fibre and blend ratio, twist, cone weight and packing, the test report per lot, the delivery dates and the validity of the price. The mill answers it with a pro forma invoice, and the order exists only when the two say the same thing line for line. Then the letter of credit, which pays the mill only against the documents it names, or the transfer (T/T), which rests on trust; either way to the mill’s company account, never a personal one.
Tools for this step
- Cost of payment terms
Put the deposit, the days and your own borrowing rate in and read what the term costs you in interest, so two quotes on two different terms compare on one line.
Every tool for this guide, grouped by what you are trying to do, is on the tools page.