30/70, T/T, and the deposit game: payment terms that protect you

Every negotiation with a Guangzhou supplier eventually arrives at the same sentence: "Our terms are 30% deposit, 70% before shipment, T/T."

Most buyers accept it because everyone says it's standard. It is standard. But "standard" is where the thinking usually stops — and payment terms are not a formality. They are the entire map of who holds the risk, and when.

What 30/70 actually means for your risk

The 30% deposit funds materials and books your production slot. Fair enough. The real question is the 70% — specifically, what happens between "goods finished" and "goods on the ship."

"70% before shipment" means you pay the balance while the goods sit in the factory's warehouse — before they load, before you or anyone has confirmed what's actually in the cartons. Once that 70% lands, your leverage is zero. If the bulk doesn't match the sample, you're no longer negotiating — you're begging.

The one change that shifts the game

Same 30/70. One condition added: "balance payable after inspection, before loading." An inspection between production and payment — someone walks in, checks the goods against your spec, and only then does the 70% move.

That sentence costs you a $199 inspection. It buys you the only leverage window that exists in the entire transaction: the factory wants its 70%, the goods are sitting there, and problems get fixed now — because fixing them is the fastest way to get paid. After the wire, that same fix becomes your problem, at your cost, in your warehouse, an ocean away.

Terms that should stop you cold

"100% upfront — small order, company policy." No. Not for a first order, not for any order with a supplier you haven't verified. You're not a customer at that point; you're a donation.

"50% or more deposit." Sometimes legitimate for custom tooling or special materials — but then the contract should say exactly what the extra deposit buys, and the supplier should survive verification first. A 50% ask from an unverified supplier is a red flag with a price tag.

"Deposit to a different account than the contract entity." Covered in its own post — this one kills more buyers than every other trap combined. The account matches the entity, or the money doesn't move.

"Price valid only if you pay today." Urgency is a sales tool, not a market condition. Real production prices don't expire over a weekend.

What about Letters of Credit and escrow?

L/Cs protect well on paper but most Guangzhou factories won't touch them below six-figure orders — the bank fees and paperwork kill the economics. Alibaba Trade Assurance helps for platform orders but covers less than buyers assume once goods leave the platform's rails. For the typical $10K–$100K order, the practical protection stack remains: verified supplier + real contract + inspection before balance. Boring, cheap, works.

The short version

30/70 T/T is fine. 70% before anyone has looked inside the cartons is not. Add one line — balance after inspection, before loading — and back it with a verified entity and a bank account that matches. The deposit is money; the balance is leverage. Spend the money, never give up the leverage.