Deposit and payment terms for a natural pet toy order
We work on T/T 50/50: a 50% deposit with the order and the 50% balance at a point you can check. On FOB and CIF shipments the balance is due when you receive the draft bill of lading. On EXW it is due before the goods leave our warehouse, and on a small DAP order by air, once the goods are ready and before pickup. The B/L is released once the balance is received.
- For importers, shops and Amazon sellers
- Before the first order
- About 5 minutes to read
What the payment terms are, in one table
The deposit is the same on every order. What changes with the shipping term is the event that makes the balance due.
| Shipping term | Deposit | Balance (50%) is due |
|---|---|---|
| FOB | 50% with the order | When you receive the draft B/L |
| CIF | 50% with the order | When you receive the draft B/L |
| EXW | 50% with the order | Before the goods leave our warehouse |
| DAP, small order by air | 50% with the order | Once the goods are ready, before pickup |
Payment is by T/T to our company account. Money for an order should go to an account in the supplier's company name. Other points to look for in a supplier are in how to vet a natural pet toy supplier.
What the deposit starts
Production time counts from the day we receive your deposit. For plain goods, the times are:
- 50–200 pcs: 8–10 days
- 200–1,000 pcs: 10–15 days
- 1,000–5,000 pcs: 25–27 days (loofah toys: 30 days)
- One 20 ft container: 30–45 days
With your own label, bag or box design, we confirm timing once we have the design file. Laser engraving starts only once the order is confirmed. Shipping time is not included in any of these figures.
What to agree before you pay the deposit
Incoterms do not settle payment for you. The US International Trade Administration notes that Incoterms do not "reference the method nor timing of payment negotiated between the seller or buyer" (Know Your Incoterms). The payment terms have to be written on the proforma invoice. For contract questions in your own country, confirm with your adviser.
Before the deposit, the proforma should show the product codes and quantities, the size tolerance in centimetres, packing and labels, the Incoterm with a named place, the lead time and the documents. It also states when the balance is due, so both sides know when to pay and when the B/L is released. For coffee wood, the accepted crack level is written on the proforma invoice before you pay a deposit. The full list is in our proforma invoice checklist.
Not sure of the product yet? Order samples first. Your first 3 are free, you pay the shipping, and the shipping is credited back on a qualifying production order.
When the balance falls due on sea freight
On FOB and CIF, the balance is due when you receive the draft B/L. By then your goods are packed, booked on a vessel and described on a document you can read. Our guide to reading a bill of lading puts it this way: you pay the balance once the goods are packed, booked and on a draft B/L, and the goods are released only to a buyer who has paid.
Along with the draft B/L, we send draft documents for you to check before the originals, on every shipment. That is the moment to look at the consignee, the description and the carton count. What to check on each draft is in check draft documents before shipping.
How the B/L is released
The B/L is released once the balance is received. Release can be by original B/L, surrender B/L or telex release. Until the balance is in, the cargo stays on hold.
How each term splits freight, insurance and risk is in FOB, CIF or DAP for a small mixed order.
Air shipments and EXW
Small DAP orders by air have no B/L to tie the balance to. The balance is due once the goods are ready, before pickup. On EXW, the balance is due before the goods leave our warehouse.
If something is wrong when the goods arrive, film the unboxing. If real defects go beyond the agreed level, we make up the part beyond that level in your next shipment.
Questions buyers ask about deposits and payment
How much is the deposit?
50% of the order value, paid by T/T with the order. The other 50% is the balance.
When do I pay the balance on a sea shipment?
On FOB and CIF, when you receive the draft B/L.
When do I pay the balance on an air shipment?
On a small DAP order by air, once the goods are ready and before pickup.
When does production start?
Production time is counted from the day we receive your deposit. With your own label or box, we confirm timing once we have the design file.
When is the B/L released?
Once the balance is received, by original B/L, surrender B/L or telex release.
See the terms on your own proforma
Send your products, quantities and destination, and we will send a quote and a proforma with the payment terms written out.
Ask for a quote Coffee wood chews
Want to see the product first? Your first 3 samples are free, you pay the shipping.