For a first-time OEM customer placing an order for outdoor furniture, the payment structure is typically designed to balance risk between both parties while establishing trust. Most manufacturers require a substantial upfront deposit, commonly ranging from 30% to 50% of the total order value, before production begins. This deposit secures materials and allocates factory capacity. The remaining balance is usually due before shipment, often with a requirement for full payment prior to the goods leaving the factory or being loaded onto containers. Some established manufacturers might offer slightly more flexible terms, such as a 30% deposit, 40% payment after production completion photos/videos are approved, and the final 30% before shipping. For very large orders, the payment might be split into more milestones: deposit, mid-production payment, pre-shipment balance. Letters of Credit (L/C) are common for international transactions, especially for new business relationships. It's rare for a first-time customer to receive extended credit terms like Net 30 or Net 60; those are typically reserved for repeat customers with a proven payment history. The exact structure is often negotiable and depends on order size, material complexity, and the manufacturer's standard policies. Clear payment terms should be explicitly detailed in the OEM agreement or purchase contract to avoid misunderstandings.