Payment Terms for Sanitary Pad Imports: T/T, L/C and Safety
Payment terms importing from China explained: how T/T deposit-balance works, when L/C is worth it, first-order risk controls, and scam red flags.
Understanding payment terms importing from China is where a good sourcing deal is either protected or lost. The product can be perfect and the price sharp — but if the payment structure is wrong, you carry all the risk and the supplier carries none. The good news: sanitary pad trade runs on a small set of standard payment structures, and once you know how each one distributes risk, you can negotiate terms that protect you without scaring off a legitimate factory. This guide covers T/T structures, when a letter of credit earns its cost, how new buyers de-risk a first order, and the red flags that should end a negotiation immediately.
T/T: the workhorse of the pad trade
T/T (telegraphic transfer — an ordinary international bank wire) settles the large majority of sanitary pad orders. The standard structure is a deposit before production, balance before shipment. Two splits are standard in this trade: 30% deposit / 70% balance, and 50% / 50%. Which one you are offered depends on order size, product type, and how established the relationship is — a first custom run typically attracts the higher deposit, and the split moves in your favour as you build an order history.
Why it is built this way:
- The deposit protects the factory. Private-label pads carry your brand and packaging — unsellable to anyone else if you vanish. The deposit funds materials and proves you are committed.
- The balance timing protects you. You pay the balance only after production is complete — ideally after you have seen inspection results — and before the goods ship. The factory still holds the goods until payment, and you have not paid in full for product you have not verified.
Where the leverage actually lives is in the written milestone. Our confirmed T/T terms place the balance before shipment. If both sides agree that an inspection report must precede that payment, put the sequence in the proforma invoice or contract rather than leaving it in a chat message.
| Structure | Your risk | Factory's risk | Typical use |
|---|---|---|---|
| 100% prepayment | Maximum | None | Never accept for a first order |
| 30/70 T/T | Moderate, controllable with inspection | Moderate | Standard for most orders |
| 50/50 T/T | Moderate | Lower | Also standard; common on custom runs and larger orders |
| 30/70 with an agreed inspection sequence | Lower when written clearly | Moderate | Negotiated first-order control |
| L/C at sight | Low | Low | Large orders, new relationships |
| Credit terms (balance after delivery) | Minimal | High | Earned after multiple clean orders |
When a letter of credit is worth it
An L/C (letter of credit) is a bank guarantee: your bank pays the supplier only when the supplier presents documents proving shipment exactly as specified. Neither side has to trust the other — they trust the banks.
That protection has real costs: opening fees and bank charges, weeks of extra lead time, and strict document requirements where a typo can hold up payment. So the practical rule:
- Worth it when: the order value is high enough that a total loss would seriously damage you, it is your first order with an unproven supplier at scale, or your market's foreign-exchange rules push trade through L/Cs anyway (common in parts of West Africa and South Asia).
- Not worth it when: the order is a trial-sized T/T amount, or you have an established track record with the factory. For small orders the fees eat the protection.
Many buyers use an L/C for order one or two, then migrate to T/T once trust is built — a progression any experienced exporter will recognize and accept.
De-risking your first order: the three-layer approach
The first order is where nearly all payment losses happen. Layer these controls:
- Shrink the bet. Start with catalog stock at its 30,000-pack-per-size MOQ rather than a private-label run at 400,000 pieces per SKU — same supplier, a smaller production commitment. Our MOQ guide shows how minimums are set at each level. A first order tests the factory's quality, communication, and paperwork with controlled exposure.
- Verify before shipment. Book a third-party inspection at the factory when production completes. It checks quantity, workmanship, and packaging against your order. If the balance should follow an acceptable report, make that sequence an explicit negotiated contract term.
- Match payment to milestones. For a larger first order, split further — for example deposit at order, a tranche at mid-production, balance after inspection. Each payment buys verified progress, never promises.
And before any money moves at all, verify who you are paying — our guide on how to verify a sanitary pad manufacturer covers the checks that take a day and prevent the worst outcomes, alongside our broader supplier selection checklist.
Red flags that should end the negotiation
Any one of these is a serious warning; two or more mean walk away:
- 100% payment before production is "required." No legitimate pad factory needs full prepayment from a new buyer. This is the single most common scam structure.
- Payment to a personal account — or to a company name that does not match the entity on the proforma invoice and export documents. Corporate orders are paid to corporate accounts, full stop.
- Bank details changed by email mid-transaction. This is the classic invoice-hijack fraud. Treat any change of account as fake until confirmed by video call with your known contact, on a number or channel you already had.
- Heavy discounts for paying more upfront. A real factory improves prices with volume, not with riskier payment terms.
- Pressure to pay through informal channels — money transfer apps, cryptocurrency, an "agent's" account. These offer zero recourse.
- No proforma invoice, or terms that keep shifting. Professional exporters document everything; vagueness is a strategy, not an accident.
A simple habit that neutralizes most of this: before the first payment, confirm the beneficiary account by live video call with the factory, and keep every commercial term inside signed documents.
Put the terms in writing: your payment checklist
- Proforma invoice states amount, currency, deposit/balance split, and the event that triggers each payment
- Beneficiary account name matches the manufacturer's legal name
- Third-party inspection timing and its relationship to the balance are written explicitly
- Incoterm stated (FOB/CIF/DDP) so you know what the price includes — see our landed cost guide
- Late-delivery and defect remedies written down (discount, replacement, or credit on next order)
- Bank fees allocated (who pays intermediary charges)
- All changes confirmed in signed revisions — never only in chat
Frequently asked questions
What currency will I pay in? Almost always US dollars — the default settlement currency of the China trade. Your bank converts from your local currency at transfer time, so the exchange rate on payment day is part of your real cost. If your local currency is volatile, the gap between deposit day and balance day carries genuine exchange risk; factor a small buffer into your landed-cost model, as covered in our landed cost guide.
How long does a T/T transfer take to arrive? Typically 1–3 working days bank-to-bank, sometimes longer for first-time transfers while banks run compliance checks. Send the SWIFT confirmation (MT103) to the factory once you pay — production scheduling usually starts when funds arrive, not when you click send, so the confirmation keeps everyone aligned on dates.
Who pays the bank charges? Agree it upfront. International wires pass through intermediary banks that deduct fees en route; if the invoice says the factory must receive the full amount, choose the "OUR" charge option so fees bill to you rather than being skimmed from the payment. A $30 fee argument delaying a $30,000 order is an avoidable classic.
Can I get credit terms as a new buyer? Realistically, no — and be wary of a supplier who offers generous credit to a stranger, because legitimate factories do not need to. Credit terms (balance after delivery, open account) are earned over multiple clean orders. The fastest route to better terms is simple: pay exactly as agreed, take delivery smoothly, and reorder. Reliability is a currency, and factories price it.
Is escrow or a sourcing-platform payment system safer? Platform escrow adds a layer of protection for very small first transactions, but it ties you to platform pricing and disputes resolved by platform rules. For container-scale trade, use a verified supplier and written T/T milestones. If the parties agree that inspection should trigger balance payment, state that exception explicitly in the contract; BINGBING's confirmed default is final payment before shipment.
Work with a factory that expects scrutiny
A manufacturer with a real track record welcomes structured payments, third-party inspections, and written milestones. BINGBING Group has shipped to 80+ countries over 20+ years; our confirmed T/T options are 30/70 or 50/50 with final payment before shipment, while letters of credit can be discussed for suitable orders. Visit our wholesale page to request order-specific terms, or request product samples; samples are free, the buyer covers courier freight, and dispatch timing is confirmed for the requested SKU, with a 1–3 business-day window where applicable.