When entering a first-time OEM partnership for outdoor furniture, understanding and negotiating payment terms is crucial for establishing a solid foundation. Typically, manufacturers require a significant deposit upfront from new clients to secure production capacity and cover initial material costs. A common structure is a 50% deposit upon order confirmation, with the remaining 50% due before shipment. Some factories may offer a 30% deposit, 40% upon production completion, and 30% before dispatch for larger orders. For first-time partners, these terms are often non-negotiable as they mitigate the manufacturer's risk. Clear milestones linked to payments, such as approval of prototypes or completion of welding frames, provide transparency. Always ensure all terms, including payment schedules, quality standards, and delivery timelines, are detailed in a formal OEM agreement to protect both parties and foster a successful long-term partnership.