Supply and commercial
What payment terms should I expect on a first order?
First orders carry more risk for both sides, so terms are usually stricter than on a running grade. The structure matters more than the percentage.
At a glance
Specification at a glance
| Stage | Typical structure | Note |
|---|---|---|
| Sample | Paid, sometimes credited | Covers line time |
| First bulk order | 30 % deposit, balance before shipment | Or L/C at sight |
| Repeat order | 30/70 or net 30 by agreement | Depends on history |
| Large project | L/C or staged payments | Tied to production milestones |
Why the deposit exists
A custom grade consumes fibre and line time before it can be sold to anyone else. The deposit is not a lack of trust; it is the cost of a run that cannot be resold if the buyer disappears.
What moves terms in your favour
History, an inspection clause the supplier trusts, and a predictable order pattern. Buyers who order the same grade every quarter get better terms than buyers who order once a year with a new specification each time.
Put the commercial question to us directly
Send the volume, the destination port and the document set your customs broker needs. We answer with the terms and the timeline.
Questions
Common questions
Is a letter of credit worth the cost?
For large first orders yes. Bank charges are small compared with the risk on a container of custom goods.
Can the balance be paid against documents?
Usually yes, against the bill of lading and the inspection report. State which documents release payment.
Do terms change with volume?
Often. Ask for the terms at your annual volume rather than at the first order volume.