The standard payment structure with a Chinese factory is a 30% deposit to start production and the 70% balance before the goods ship. Knowing how this works — and what to check at each stage — protects your money on both halves.
- 30% deposit secures your order and pays for materials; 70% balance is due before shipment.
- The deposit commits the factory to your production slot and your specifications.
- Never pay the balance until you have confirmed the goods are made and correct.
- Tie the balance payment to proof: photos, a video, or a third-party inspection.
Why factories split the payment
A factory will not start cutting materials for a custom order on a promise. The 30% deposit covers their upfront cost — raw materials, components, and a production slot reserved for you — and signals that you are a serious buyer. It is the point at which your order becomes real on their factory floor.
The 70% balance protects them against a buyer walking away after the goods are made, and it gives you leverage: the factory only gets the bulk of the money once the goods exist and are ready to ship. The split aligns both sides reasonably well, which is why it has become the default across most of the industry.
The deposit also sets the tone of the relationship. Paying it promptly and cleanly — the correct amount, to the correct account, against a clear invoice — tells a factory you are organised and serious, which often translates into better communication and priority when production gets busy. A messy or late deposit, by contrast, can push your order to the back of the queue before it has even started.
What to check before each payment
Treat the two payments as two different decisions with two different checklists.
Before the 30% deposit
- A clear written quotation with specifications, quantity and unit price.
- Agreed lead time and shipment terms (for example FOB or CIF).
- The factory's RMB account name matches the company on the quotation.
Before the 70% balance
- Proof the goods are produced — dated photos or a short video.
- Ideally, a third-party inspection report for larger orders.
- Confirmation of packing, quantity and any branding or labelling.
When the split is different
30/70 is the norm, not a law. You will see variations depending on the order and the relationship:
| Situation | Common split |
|---|---|
| Standard custom order | 30% deposit / 70% balance |
| First order, new supplier | Sometimes 50% / 50% |
| Trusted, repeat supplier | May extend partial credit |
| Stock (ready) goods | Often 100% before shipment |
If a supplier demands 100% upfront for a custom order from a buyer they have never worked with, treat it as a flag worth questioning — it removes all of your protection.
As trust builds over several clean orders, the split often shifts in your favour. A factory that has shipped to you reliably may drop the deposit, offer short payment terms, or ship before the balance clears. That flexibility is earned, and it is one more reason to make every payment correct and on time from the very first order — today's discipline is tomorrow's credit line.
Frequently asked questions
Is a 30% deposit safe to pay?
It is standard practice, but only after you have verified the supplier and have a clear written quotation. The deposit funds materials and reserves your production slot.
What if the goods are wrong after I pay the deposit?
This is exactly why you hold the 70% balance. Do not release it until photos, a video, or an inspection confirm the goods match your order.
Should I ever pay 100% upfront?
Only for ready stock from a supplier you trust, or small low-risk orders. For custom production from a new supplier, full prepayment removes your leverage.
SilkBridge helps importers in Kenya, Uganda and Tanzania pay Chinese suppliers in RMB — documented, reviewed in Nairobi, and tracked to payout.
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