For new OEM clients entering manufacturing partnerships, payment terms typically follow industry-standard structures designed to balance risk and trust between both parties. Most manufacturers require an initial deposit upon order confirmation, usually ranging from 30% to 50% of the total order value. This deposit secures production capacity and covers initial material costs. The remaining balance is commonly due according to "net" terms - often net 30 days after shipment or delivery completion. Some suppliers offer progressive payment schedules for large orders, with installments tied to production milestones like completion of prototypes, production commencement, and pre-shipment inspection. Factors influencing these terms include order volume, client credit history, product complexity, and existing business relationships. Many manufacturers are willing to negotiate terms for established brands or repeat business, potentially offering extended payment windows or reduced deposit requirements after successful initial collaborations. Clear payment terms should be documented in the OEM agreement alongside quality standards, delivery schedules, and intellectual property protections to ensure transparent partnership foundations.