When you choose to order directly from an outdoor furniture factory, understanding the standard payment terms is crucial for a smooth transaction. Typically, the process begins with a formal quotation or proforma invoice detailing the order specifics and the proposed payment schedule.

For most custom or large-scale orders, a deposit or down payment is required to initiate production. This initial payment, often ranging from 30% to 50% of the total order value, secures your place in the production queue and covers initial material costs. For standard in-stock or smaller orders, some factories may require full payment upfront, especially for direct-to-consumer sales.

A common and secure structure for commercial projects or large custom residential orders is a progressive payment plan. This may involve a 50% deposit upon order confirmation, followed by a 40% payment upon completion of production or before shipment, with the final 10% balance due upon delivery or after a post-installation inspection. This method balances risk for both the buyer and the manufacturer.

Factories prioritize secure payment methods. Bank transfers (TT) are the most common, offering a clear audit trail. Reputable factories also provide secure online payment gateways for credit card transactions, and some may accept letters of credit (L/C) for international commercial orders, which add a layer of financial security.

Always ensure your payment terms are clearly outlined in a formal sales contract or purchase order. This document should specify deposit amounts, milestone payment triggers, and the final due date. Direct communication with the factory's sales team is key to establishing terms that are fair, clear, and tailored to your specific project's scope and timeline.