Where are the risks in accepting a D/P at sight order?

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  • Jan 12, 2026 at 04:26
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The client requests D/P at sight payment. I mainly did T/T before and am not very familiar with this payment method. I would like to ask, what are the main risks of D/P at sight? What key points do I need to pay attention to when accepting the order?

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Daniel Xu
Daniel XuYears of service：10Customer Rating：5.0

Director of Import & Export OperationsStart a Chat

The core risk of D/P at sight is that it relies on commercial credit rather than bank credit. The bank only acts as a collecting bank and does not bear payment guarantee responsibility. If the buyer fails to redeem the documents from the bank due to market fluctuations，broken capital chains，or malicious refusal to pay，your goods will incur high demurrage and storage fees at the destination port，and in extreme cases may be auctioned by customs. You must check the buyer's credit through Sinosure or other channels before accepting the order，and assess the political and foreign exchange risks of the destination country. At the same time，documents must strictly comply with contract requirements to avoid giving the buyer a flawed reason for refusal to pay.

Grace Wang
Grace WangYears of service：10Customer Rating：5.0

Senior Foreign Trade ConsultantStart a Chat

From a logistics practice perspective, the biggest risk you face is that the buyer does not redeem the documents after the goods arrive at the port, and container detention and storage fees will accumulate rapidly, even exceeding the value of the goods. It is recommended that you prioritize CIF terms and control the freight forwarder and shipping company so that you can control the cargo rights when necessary. At the same time, you must clearly instruct in the collection instruction: if the buyer refuses to pay, whether the goods should be returned or resold, and who bears the costs. Understand the free storage period at the destination port in advance and establish contact with local agents to ensure someone can assist in handling the goods in an emergency.

Linda Gao
Linda GaoYears of service：7Customer Rating：5.0

Documentation SupervisorStart a Chat

For you, the size of the risk depends on the foundation of trust with the customer. If it is an old customer with many years of cooperation, D/P at sight can be a means to consolidate the relationship; but if it is a new buyer, this is equivalent to credit sales, and the risk is extremely high. When negotiating, you can use this script: "Our company has internal control requirements for D/P at sight. The initial cooperation limit needs to be within XX US dollars, and a bank credit certificate is required." This appears professional and protects your own interests. At the same time, it is recommended that you investigate the buyer's background through Sinosure or request trade references from other suppliers.

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