When placing an order with an outdoor furniture factory, understanding the standard payment terms is crucial for a smooth transaction. Typically, factories require a deposit to commence production. This initial payment, often ranging from 30% to 50% of the total order value, secures materials and schedules your project in the manufacturing queue. The remaining balance is usually due before shipment. For larger orders or new clients, factories might insist on payment in full before the goods leave the factory. Common international trade terms like FOB (Free On Board) are frequently used, meaning the buyer is responsible for shipping costs once the goods are loaded onto the vessel. Other terms like EXW (Ex Works) or CIF (Cost, Insurance, and Freight) may also be negotiated. Payment methods typically include bank transfers (T/T) or letters of credit (L/C), with L/C being more common for securing large, first-time orders. Always ensure the payment schedule, currency, and all terms are clearly detailed in your proforma invoice or sales contract to avoid future disputes.