How to Find Factories as a Solo Trader

T/T and L/C each have their place. T/T is simpler with lower fees — ideal for repeat clients. L/C is more secure but complex — suitable for large orders. My rule: T/T under $500K, L/C above.

Currency fluctuation impacts your margin. An order from quote to payment can take 2-3 months. A 5% rate move can eliminate your profit. Hedge with forward contracts or include fluctuation clauses.

When clients request O/A terms, take precautions. Conduct a credit check, buy export credit insurance, set a credit limit, reconcile regularly. O/A can work but only with proper controls. One bad debt wipes out months of profit.