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Zhejiang, China
Before You Wire That Deposit: Six Things to Lock Down
You’ve vetted suppliers. You’ve evaluated samples. You’ve negotiated terms. Now you’re about to send money to China for the first time.
Pause. There are six things you need to confirm BEFORE that deposit goes out. Skip any of these and you’re playing with fire.
1. Get the Proforma Invoice (PI) First
A PI is a preliminary invoice that outlines exactly what you’re ordering and the terms. It’s not the final invoice – it’s your protection before paying.
Your PI must include:
- Full product specifications
- Quantity and unit prices
- Payment terms (deposit percentage, balance timing)
- Lead time commitment
- Supplier’s company details and bank information
- Any agreed-upon customization details
No PI = no deposit. Full stop. Any supplier who pressures you to pay before providing a PI is a red flag.
2. NDA: Yes, You Need One
If you’re ordering custom products – your own design, your brand, unique specifications – get an NDA signed before production begins.
A proper NDA covers:
- What information stays confidential (designs, specs, pricing)
- Restrictions on sharing with third parties
- What happens if they breach the agreement
For rooftop tents specifically, this matters if you’re developing unique features or proprietary designs. Don’t assume your supplier won’t share your designs with competitors.
3. Lead Time in Writing
30-60 days is the industry standard. But get it specified in writing on the PI.
Why? Because delays happen. And when they do, you want documented evidence of what was agreed upon. Verbal commitments are worthless in disputes.
Also clarify: Is that production time only, or does it include packaging and export preparation? These details matter for your planning.
4. Quality Control: Your Safety Net
Before production, confirm:
- What QC checkpoints exist during production?
- Is pre-shipment inspection included? (It should be)
- Who pays for third-party inspection if needed?
- What’s the defect/rejection rate you’ve agreed to?
I always request pre-shipment inspection for orders over $10,000. Costs $200-$400 typically. Worth every dollar to catch issues before your container leaves China.
5. Payment Methods: Choose Wisely
Most Chinese suppliers prefer USD. Common payment options:
| Method | Speed | Best For |
| T/T Bank Transfer | 1-5 days | Most orders, best rates |
| PayPal | Instant | Small orders only (5% fee) |
| Western Union | Minutes | Emergency small payments |
| Letter of Credit | 1-4 weeks | Large orders, high trust |
For most first orders, T/T with 30% deposit / 70% balance works well. Standard, secure, and widely accepted.
6. Payment Terms: The Structure Matters
How you structure payments affects your risk and cash flow:
- 30% deposit, 70% before shipment: Most common, reasonable risk balance
- 30% deposit, 70% against BL copy: Good – you get proof of shipment before final payment
- 100% prepayment: Never for first orders. Too risky.
- Open account (pay after delivery): Only with trusted, long-term suppliers
The Documentation Checklist
Before sending that deposit, you should have:
- Signed Proforma Invoice with all terms
- Signed NDA (if custom products)
- Written lead time confirmation
- QC/inspection agreement
- Payment method and terms finalized
- Supplier’s business registration (for large orders)
This might seem like overkill for a first order. But these documents protect both parties. A good supplier will appreciate your professionalism.
The suppliers who resist documentation are the ones you should worry about.
