For a first-time OEM customer venturing into outdoor furniture production, understanding the payment terms is crucial for a smooth partnership. Typically, manufacturers implement structured terms to mitigate risk while building trust with new clients. The most common structure is a deposit against production, often ranging from 30% to 50% of the total order value, due upon order confirmation. This deposit secures raw materials and allocates factory capacity. The balance is frequently due before shipment or according to agreed milestones, such as after prototype approval or during the final quality inspection. Some factories may offer more flexible terms like 30% deposit, 40% upon production completion, and 30% before delivery for established designs. For completely new, custom designs requiring significant tooling, an upfront tooling or development fee is standard, separate from the unit cost. Open account terms are rare for initial orders; letters of credit (L/C) or telegraphic transfers (T/T) are preferred. Clear communication about payment schedules, tied to production phases, is essential for a successful first project and lays the foundation for potentially more flexible terms on future orders.