New buyers obsess over unit price and treat payment terms as an afterthought. Experienced buyers know the opposite: the payment structure determines your risk if the goods are wrong, and the supplier's cash flow to even start production. A supplier demanding 100% upfront on a first order is telling you something; so is one offering an escaped escalation ladder.
| PayPal | T/T (bank transfer) | L/C (Letter of Credit) | |
|---|---|---|---|
| Typical use | First orders, samples, small lots | Main instrument for repeat programmes | Large contracts, above ~USD 50,000 |
| Structure | Full payment | 30% deposit, 70% against B/L copy | Bank-guaranteed payment on documents |
| Buyer protection | Strong — dispute and chargeback | Moderate — depends on supplier relationship | Strong — bank checks documents |
| Cost | 3–4.5% fees | Bank wire fees, negligible on large sums | 1–2% of contract + heavy paperwork |
| Our terms | Full payment under USD 5,000 | T/T 30/70 from USD 5,000–50,000 | L/C at sight above USD 50,000 |
The proforma invoice (PI) is the contract in embryo. Check it names: the exact product specification and grade, packaging per carton, Incoterm (FOB, CIF, EXW), payment structure with dates, production lead time counted from which event (deposit received? artwork confirmed?), and the bank details — verified by a small test transfer if it is a first order.
A mismatch between quotation and PI is not a small thing. It is the first data point on how this supplier handles discrepancies when there is money behind them.
Never let a discount tempt you into 100% T/T upfront on a supplier you have not shipped with. The 2% you save is not proportional to the risk you take.
It covers raw material purchase and production start-up. The balance is paid against the bill of lading copy — after goods are loaded — which keeps your quality leverage intact.
Yes, in full for orders under USD 5,000. It is the fastest way for both sides to complete a clean first transaction without bank formalities.
Above roughly USD 50,000, or when your company policy requires bank-guaranteed payment. Below that threshold, the fees and document workload usually cost more than the risk they cover.
Send us the product, quantity and your market — we reply within 24 hours with pricing, sampling options and a realistic production schedule.
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