In short: the most common practice is to pay a deposit when production starts, then the balance before shipping, once quality has been checked. Always pay the company named on your documents, into an account in its name, and be wary of any change of bank details. A clear proforma invoice and a quality inspection before the balance are your best protection.
The most common payment schedule
- Proforma invoice: an official quote covering the product, quantities, price, Incoterm and payment terms.
- Deposit when production starts.
- Quality control before shipping.
- Balance once the goods have been approved.
This schedule keeps you in a strong position to the end: if the order does not pass, the balance is not paid until it is corrected.
Payment methods
- international bank transfer: the most widely used in B2B;
- protected payment methods offered by online platforms;
- letter of credit: used for large transactions, more complex.
Each has its advantages and costs. The most important thing is to check who you are paying.
Security rules
- pay only the company named on the contract and invoice;
- refuse payments to a personal account or another company;
- confirm any change of bank details through another channel (a phone call, a known contact): it is a common fraud;
- keep a written record of every agreement;
- never pay the full amount before production on a first order.
Currencies and exchange rates
Paying in a foreign currency exposes you to exchange rate swings and bank fees. Some intermediaries let you pay in your own currency, into an account in your country, which makes things simpler.
Frequently asked questions
What deposit percentage is usual? It varies with the supplier and the business relationship. What matters is that part of the payment stays tied to the quality approval.
What if the supplier asks me to pay into a new account? Always check through another means of contact before making any payment.
General information, for guidance only.
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