How Do I Handle Payments Without Risk When Ordering Jeans from China?
You worry about sending large sums of money overseas. What if there are delays or mistakes? This financial uncertainty can be a huge source of stress for your brand.
A reliable factory uses secure, standard payment methods like TT and L/C. They require a reasonable deposit (30-50%) to start and only offer net terms to trusted, long-term partners.
I’ve seen how unclear payment terms can sour a good partnership. Money conversations can be awkward, but they don’t have to be. In my factory, we believe in being upfront and transparent about every aspect of payment. There should be no surprises.
This is not just about transactions; it’s about building a foundation of trust so you can focus on designing, not worrying about your funds. Let’s walk through how we handle it.
This is not just about transactions; it’s about building a foundation of trust so you can focus on designing, not worrying about your funds. Let’s walk through how we handle it.
Which payment options do they accept (TT, L/C, open account)?
You need a payment method that is secure and works for your business. You are worried about complex international systems or being forced into a high-risk payment option.
We primarily use Telegraphic Transfer (TT) for its simplicity and speed. For larger, high-value orders, we also accept a Letter of Credit (L/C) for maximum security for both parties.
For over two decades, I’ve found that keeping things simple and secure is the best way. That’s why Telegraphic Transfer, or TT, is our most common method. It’s a direct bank-to-bank wire transfer. We split it into two simple parts: a deposit to start production and a final balance payment before we ship. This works great for most orders.
For very large orders, especially with a new partner, a Letter of Credit (L/C) is an excellent option. This is basically a promise from your bank to pay us once we prove we have shipped the goods as promised. It protects you completely.
We rarely use an “open account” or net terms. This is reserved only for our partners who we’ve worked with for years and who have a consistent, high-volume order history. This is a sign of a very deep and trusted relationship.
For very large orders, especially with a new partner, a Letter of Credit (L/C) is an excellent option. This is basically a promise from your bank to pay us once we prove we have shipped the goods as promised. It protects you completely.
We rarely use an “open account” or net terms. This is reserved only for our partners who we’ve worked with for years and who have a consistent, high-volume order history. This is a sign of a very deep and trusted relationship.
What deposit percentage is required to start production?
You need to place a deposit, but you’re unsure if the amount is fair. A high deposit ties up your cash flow and feels risky before production has even begun.
Our standard deposit is 30% of the total order value. For highly customized orders with unique materials, we may require 40-50%. This deposit secures your fabric and locks in your production schedule.
The deposit is not just a payment; it’s the official start of your project. It’s the moment we go from planning to action. As soon as your deposit is received, my team immediately starts working for you.
We purchase the exact amount of denim needed, order your custom trims and hardware, and book a slot for you on our production calendar. The amount of the deposit is based on risk. For a standard order using our popular fabrics, a 30% deposit is enough to cover these initial material costs.
If your order is highly specialized—for example, if you need a custom-milled fabric or expensive, unique hardware—we might ask for a 40% or 50% deposit. This is because those materials are bought just for you, and if the order were canceled, we couldn’t use them for anyone else. It’s a fair way to share the commitment.
We purchase the exact amount of denim needed, order your custom trims and hardware, and book a slot for you on our production calendar. The amount of the deposit is based on risk. For a standard order using our popular fabrics, a 30% deposit is enough to cover these initial material costs.
If your order is highly specialized—for example, if you need a custom-milled fabric or expensive, unique hardware—we might ask for a 40% or 50% deposit. This is because those materials are bought just for you, and if the order were canceled, we couldn’t use them for anyone else. It’s a fair way to share the commitment.
Can I negotiate net-30 or net-60 payment terms?
You want to manage your cash flow with payment terms like net-30. You are afraid to even ask, thinking a factory in China will immediately say no.
We can discuss net terms, but it is reserved for established, long-term partners with a proven history of high-volume, recurring orders. For new clients, we must stick to a deposit-before-shipment model.
I understand that payment terms are crucial for managing your business’s cash flow. In an ideal world, we could offer net-30 or net-60 terms to everyone.
However, as a manufacturer, we also have large upfront costs for materials and labor. Extending credit is a significant financial risk for us. Because of this, we build up to net terms based on trust and history.
A brand that has worked with us for over two years, places consistent, large orders every quarter, and has always paid on time is a partner we can trust with net terms. For new clients, this level of trust simply isn’t there yet.
Our relationship is just beginning. So, we start with the standard model: deposit to begin, and final payment before shipping. This protects both of us and helps us build the strong, trusting relationship needed for future flexibility.
However, as a manufacturer, we also have large upfront costs for materials and labor. Extending credit is a significant financial risk for us. Because of this, we build up to net terms based on trust and history.
A brand that has worked with us for over two years, places consistent, large orders every quarter, and has always paid on time is a partner we can trust with net terms. For new clients, this level of trust simply isn’t there yet.
Our relationship is just beginning. So, we start with the standard model: deposit to begin, and final payment before shipping. This protects both of us and helps us build the strong, trusting relationship needed for future flexibility.
How do currency fluctuations affect my invoices?
You agree on a price in USD. Then, the exchange rate changes, and you’re worried your final invoice will suddenly be much higher, destroying your profit margin.
We eliminate this risk for you. The price we quote you in USD is the final price you pay. We lock in the exchange rate on the day of your order confirmation.
The global currency market is unpredictable, but your invoice shouldn’t be. When we prepare your proforma invoice (PI), we do all our internal calculations in Chinese Yuan (CNY). Then, we convert that final total to US Dollars (USD) using the exchange rate on that day. That USD amount is what goes on your invoice, and it is locked in. It will not change.
If the exchange rate between the USD and CNY changes a month later, that is our business risk to manage, not yours. This gives you complete certainty in your costs, which I know is essential for planning your business.
The only exception would be for extremely large, long-term projects spanning many months, where we might agree on a specific currency clause in the contract. But for 99% of our partners, the rule is simple: the USD price you’re quoted is the price you pay, period.
If the exchange rate between the USD and CNY changes a month later, that is our business risk to manage, not yours. This gives you complete certainty in your costs, which I know is essential for planning your business.
The only exception would be for extremely large, long-term projects spanning many months, where we might agree on a specific currency clause in the contract. But for 99% of our partners, the rule is simple: the USD price you’re quoted is the price you pay, period.
Conclusion
Clear payment terms are the foundation of a great partnership. We focus on secure methods, fair deposits, and stable pricing so you can focus on building your brand.
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