When purchasing bearings from China, international buyers need more than just competitive pricing and product quality—they also need a secure, flexible, and transparent settlement method. For importers and distributors dealing with high-value goods such as industrial bearings, the choice of payment method, currency, and credit terms can directly affect cash flow, financial risk, and transaction efficiency.
In this article, we provide a comprehensive breakdown of the available settlement options, payment terms, currencies, bank charges, and risk control strategies when purchasing bearings from China.
Is There a Credit Period for Purchasing Bearings from China?
Yes, but it depends on the relationship with the supplier and order volume.
Common Scenarios:
- New Buyers: Typically required to pay 100% in advance or 30% deposit + 70% before shipment
- Repeat Buyers with Trust: May be offered OA (Open Account) 30-60 days, DP (Documents against Payment), or LC (Letter of Credit) terms
- Long-Term Distributors or OEM Clients: More likely to access custom credit terms, often supported by export credit insurance (e.g. Sinosure)
⚠️ Note: Chinese bearing manufacturers are generally cautious about extending credit to first-time customers due to international payment risks.
What Are the Payment Methods for Purchasing Bearings from China?
International transactions are typically settled via one of the following standard payment methods:
| Payment Method | Description | Usage Scenario | Risk Level (Buyer) |
| T/T (Telegraphic Transfer) | Bank wire transfer, usually split 30/70 | Most common for medium/large orders | Medium |
| L/C (Letter of Credit) | Bank-to-bank payment guarantee | Large orders, high-trust relationships | Low |
| DP (Documents Against Payment) | Bank releases shipping docs after payment | Moderate trust, large shipments | Medium |
| OA (Open Account) | Payment due after delivery (e.g. 30–60 days) | Long-term buyers | High (for seller) |
| PayPal / Credit Card | Fast and convenient for samples or small orders | Sample orders only | High (not suitable for bulk) |
| Alibaba Trade Assurance | Platform-backed payment protection | Online orders, small to medium buyers | Low to Medium |
What Currencies Can Be Used to Settle the Purchase of Bearings from China?
| Currency | Common Use Cases | Exchange Risk Management |
| USD (US Dollar) | Most widely accepted for global trade | Suppliers hedge or quote fixed USD prices |
| EUR (Euro) | Common for EU buyers | Used for buyers avoiding USD conversion |
| CNY (Chinese Yuan) | Increasingly accepted in Asia | Beneficial if buyer holds RMB accounts |
| Other Currencies (GBP, AUD, etc.) | Accepted case-by-case | May require conversion surcharge |
Chinese bearing exporters are flexible in accepting multiple major currencies depending on buyer needs and supplier capabilities.
✅ Tip: Confirm the currency in your PI (Proforma Invoice) and verify the exchange rate before confirming payment.
Are There Bank Fees for Cross-Border Payments? Who Bears the Bank Fees?
Yes, international wire transfers come with bank charges. These typically include:
- Sending bank fee (charged by buyer’s bank)
- Intermediary bank fee (especially for USD transfers through SWIFT)
- Receiving bank fee (charged by the supplier’s bank)
Fee-Bearing Arrangements:
- OUR: Buyer pays all fees (preferred by most Chinese exporters)
- BEN: Seller bears all fees (rare)
- SHA: Each party pays their respective bank fees (common compromise)
⚠️ Always confirm the fee-bearer code when instructing your bank to avoid underpayments or shipment delays.
How to Protect Buyers from Cross-Border Payment Risks?
International payments carry risks such as non-delivery, fraud, currency volatility, and documentation errors. Here are ways to mitigate them:
5.1 Use Secure Payment Methods
- For first-time transactions: use Alibaba Trade Assurance or L/C
- For larger orders: consider T/T with partial deposit + balance after inspection
5.2 Work with Verified Suppliers
- Verify business license, address, and export records
- Request samples and check business references or audit reports
5.3 Set Clear Contract Terms
- Include payment milestones, penalties, and delivery schedules
- Specify who bears bank fees and currency fluctuation risks
5.4 Use Export Credit Insurance
- Larger distributors can request sellers to insure accounts receivable
- Insurance coverage may allow credit terms even for new customers
Conclusion
Settlement methods for purchasing bearings from China are diverse, secure, and flexible— provided you choose the right supplier and payment structure. For new buyers, upfront payments or escrow-style platforms like Alibaba Trade Assurance are safe. For repeat clients, credit terms like OA or DP may be negotiated based on history and volume. Understanding bank fees, currency options, and risk management tools is critical to smooth cross-border transactions.
A trustworthy bearing supplier in China should offer transparent payment terms, support multiple currencies, and help buyers minimize financial risks. If you’re exploring long-term partnerships or evaluating new suppliers, ensure payment security is part of your negotiation.
Please click on the link below to read the best shipping options for purchasing bearings from China.
