Let’s talk about something that makes a lot of buyers nervous: payment. How do you pay someone on the other side of the world? What if they take your money and do not ship? What if the quality is terrible and you cannot get your money back?
These are valid concerns. Let me walk you through what actually works.
The Most Common Methods
T/T (Telegraphic Transfer)
This is what most buyers use.
Here is how it works:
- You pay 30-50% deposit to start production
- Factory sends photos when order is ready
- You pay the remaining 50-70%
- Factory ships and sends you the Bill of Lading
Pros: Simple, low bank fees ($25-50 per transfer), direct to factory.
Cons: You trust the factory to deliver. That is why the inspection step matters.
Letter of Credit (L/C)
This is for bigger orders – usually $50,000+
Your bank guarantees payment to the factory. The factory only gets paid when they present the right documents (Bill of Lading, inspection certificate, etc.).
Pros: More secure, good for building trust with new suppliers.
Cons: Expensive (0.5-1% of order value), takes time to set up, requires bank paperwork.
Trade Assurance (Through Alibaba/Made-in-China)
Good for your first order with a new supplier.
The platform holds your payment and only releases it when you confirm the goods arrived OK.
Pros: Built-in dispute resolution, easy to use.
Cons: Fees (2-5%), some suppliers do not like it.
PayPal
Only for small sample orders. Not practical for bulk orders because:
- High fees (3-4%)
- Hard to dispute for B2B purchases
- Does not protect you the same way as consumer purchases
What Payment Structure Should You Use?
Orders under $10,000:
- 50% deposit to start
- 50% before shipment
Orders $10,000 – $50,000:
- 30% deposit to start
- 70% against B/L copy
Orders over $50,000:
- 30% deposit
- 70% via L/C or against B/L
Safety Tips
- Never pay 100% upfront. Ever. No matter what they say.
- Use escrow services for first orders. It costs more but protects you.
- Verify bank details. Call the factory to confirm the account name and number. Scammers sometimes use similar-sounding names.
- Get everything in writing. Payment terms, delivery timeline, quality standards.
- Request an invoice with their company stamp. Shows they are legitimate.
Red Flags:
- Asks for 100% payment before production
- Bank account name does not match company name
- Will not provide any documentation
- Pressures you to pay quickly
What We Do
We work with buyers all the time. For new buyers, we typically do 30% deposit, balance against B/L. For established relationships, we can do net 30 or other arrangements.
Your money is protected – we do not disappear. We have been doing this for 15+ years and rely on repeat business and referrals.
Questions about payment? Let us know. We are happy to explain what works best for your situation.
有问题？直接问我们
WhatsApp: +86 18060068315
Email: info@primestoneworks.com
