Ok, so you want to be a smart buyer? 

Here is my pearl of advice.

Always put an Inspection Company Clause in the terms of your LC. 

You cannot imagine the amount of times I have saved myself from loosing money just because of this clause. By the way, I am assuming that you are an honest professional businessman since this clause in itself can be used wrongly to your advantage. 

Putting an inspection clause does 2 things. 

First  of all it makes your supplier note that you will be sending someone to inspect the goods. WHETHER YOU SEND SOMEONE OR NOT IS IRRESPECTIVE. The point is that your supplier will be more likely to produce the goods correctly just because of that fear. 

The second is that it will always give you an upper hand in deciding whether to pay or not in case the goods are wrong. 

Since one of the documents that your supplier will need to present to the bank in order to get payed, will be a signed letter by your inspection company, then this means that he will always be depending on you o your inspector to receive this letter. 

Remember that for your supplier to get payed he will have to fulfill 100% of the terms of the lc. If one of the terms is to present the original duly signed and company chopped letter stating that so and so goods are in good order, then without that he cannot get payed. 

I have posted an example of this clause up in the free resources, please make sure to look it up. 

I cannot stress enough  the times this clause has saved me from disaster, I repeat from disaster. 

Also note a very important point:  the bank IS ONLY CONCERNED WITH THE DOCUMENTS. For the last years I have even been putting one of my old companies as the inspector in the clause. Then what I do, once I know that shipment is all ok, since I have the old stamp and letter head of that company, I make the letter , chop it, sign it and send it to the supplier who then presents it for payment. 

The bank does not know that the inspector is a company that is closed down. They also don’t care.   

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