TT (Telegraphic Transfer)
Definition
Telegraphic Transfer refers to an electronic bank-to-bank funds transfer, commonly used in international trade for advance payments, balance payments, or open account settlement.
Why It Matters
TT is simpler and faster than a Letter of Credit but offers less structural protection to either party; the payment terms and timing must be agreed clearly in the sales contract.
Example
A contract may specify '30% TT in advance, 70% TT against shipping documents.'