Payment Terms for Custom Bag Orders: What Is Standard and What Is Safe
Deposits, balance payments, PayPal, letters of credit — and how to protect yourself on a first order.
Payment terms are where trust and risk meet. Here is what is normal in bag manufacturing, what we accept, and how to protect your money on a first order.
The standard structure
For custom manufacturing the industry standard is:
- 30% deposit with the order — this buys fabric and books production capacity.
- 70% balance before shipment — paid after you see the QC photo report and before the goods leave the factory.
We use exactly this structure. It is fair to both sides: the factory is not financing your order, and you are not paying in full before anything exists.
Payment methods we accept
| Method | Best for | Notes |
|---|---|---|
| T/T bank transfer | Bulk orders | Lowest cost; beneficiary must match the company name |
| PayPal | Samples and small orders | Fast and traceable; higher fees, so usually for orders under a few thousand USD |
| Card / payment link | Samples, top-ups | We send a secure payment request |
| Letter of credit | Large orders (USD 50k+) | Bank-backed; paperwork-heavy, negotiated per order |
Why not 100% upfront?
A supplier asking for 100% before production removes all your leverage. If the goods are wrong, your options shrink to negotiation. Unless you have a long relationship, insist on a deposit-plus-balance structure, or at minimum pay the balance against a photo report before shipment.
Why not 100% after delivery?
Equally, most factories cannot finance fabric and labour for a stranger. Expecting full credit terms on a first order is why some buyers never get quotes at all. If you need open account terms, build the relationship with two or three paid orders first.
Protecting yourself on a first order
- Start small. A 500-pc trial limits exposure to a few hundred dollars.
- Pay the deposit by traceable bank transfer to the company account, never to a personal account.
- Check the beneficiary name against the company name on the invoice and business licence.
- Get it in writing. A simple proforma invoice listing specs, quantity, unit price, Incoterm and lead time is a contract.
- Insist on a photo report before the balance payment. It is your last checkpoint before the goods ship.
- Use a third-party inspection (SGS, BV, Intertek) for large first orders.
- Keep records of the approved sample — it is your quality reference.
Watch out for these
- Requests to pay to a personal bank account or a name that does not match the company.
- Sudden changes to bank details mid-order — always confirm by a second channel (phone or video call). This is a common fraud pattern.
- Pressure to pay the full amount for a "discount".
- No proforma invoice, no written specification.
What happens if something goes wrong
Agree the remedy before you pay: if part of a shipment is defective, what happens? Our standard terms are replacement or credit for any confirmed defect, with photographic evidence. Having this in writing at the quotation stage turns a dispute into a process.
Currency and fees
We quote in USD. Your bank may charge a transfer fee and apply its own exchange rate — ask your bank for the total cost of an international transfer before you send it. For PayPal, note that fees are charged to the sender or recipient depending on the option you select.
Our terms at a glance
- Deposit: 30% T/T with the order
- Balance: 70% before shipment, after the QC photo report
- Samples: PayPal, card or T/T
- Large orders: letter of credit by agreement
- Prices quoted in USD, FOB Guangzhou
Next step
Request a proforma invoice with the full specification — it costs nothing and protects both sides. Request your quote or read the wholesale terms.
EcoBag Factory — custom bag manufacturer in Guangzhou, China. MOQ 500 pcs, 1–2 colour print included, samples in 3–7 working days, FOB / CIF / DDP worldwide.
Keep reading & get a quote
Factory-direct pricing, 1–2 colour print included, MOQ 500 pcs.