When initiating a new outdoor furniture order with a manufacturing factory, establishing clear payment terms is crucial for a smooth partnership. Typically, the payment structure is designed to balance risk and trust between both parties. The most common model involves a deposit paid upon order confirmation, followed by the balance payment due before shipment.

A standard term is a 30% to 50% deposit via T/T (Telegraphic Transfer) after finalizing the purchase order and proforma invoice. This deposit secures your order and allows the factory to commence production and procure raw materials. The remaining balance, usually 50% to 70%, is required to be paid in full before the goods leave the factory or are loaded onto the shipping vessel. This is commonly referred to as "balance before shipment." You will receive shipment documents and tracking details upon completion of this payment.

For first-time collaborations or smaller orders, factories might request a higher deposit percentage. For established relationships or large volume orders, more flexible terms can sometimes be negotiated. Many factories on B2B platforms also offer secure payment channels like Trade Assurance, which holds the payment in escrow until you confirm satisfactory delivery. It's essential to have all terms, including payment milestones, quality checkpoints, and delivery schedules, clearly detailed in a formal contract to protect both your investment and the factory's commitment to quality and timely production.