A 30% deposit is a proposed commercial term, not evidence that a factory is trustworthy or that the order is ready. Decide by checking the supplier, understanding what the deposit funds, confirming the product, and agreeing what must happen before the balance is paid.
Your supplier proposes “30% deposit, 70% before shipment.” The split looks straightforward, but it leaves several questions unanswered. Will materials be purchased? Is the sample final? Does “before shipment” allow time to inspect and correct problems?
For a small business, the amount at risk matters more than the familiarity of the percentage. Look at the deposit together with tooling, development charges and the commitments you will make while waiting for the order.
Ask what the deposit is intended to fund
A factory may need to buy materials, reserve workshop capacity or arrange outside processing. Ask which steps must begin after the deposit and which are still waiting for your approval.
A custom material purchase may create different exposure from an existing product made with routinely stocked components. The proposed amount should be discussed in the context of the actual work, not accepted because every supplier is said to use the same split.
Confirm that the order is ready for production
Before funding a production run, check the approved sample, drawing revision, material, finish, quantity and packaging. Identify unresolved decisions and how they affect the schedule.
If development is still underway, discuss a separate development or sampling stage. Calling a payment a production deposit does not make an unfinished design ready for manufacturing. Keeping the stages distinct helps you understand what each payment buys.
Verify the supplier and recipient first
Check the contracting company and the payment beneficiary. Resolve differences in their names and verify any changed bank instructions through a previously established channel.
Ask about the factory’s relevant processes and the work it will outsource. A deposit percentage cannot answer whether the supplier can make your product consistently or handle your order responsibly.
Look at total exposure, not just the deposit line
Add any upfront tooling, samples, testing, packaging commitments and other non-refundable charges you have agreed. Consider how much money remains tied up before you have a sellable product.
For illustration only, a USD 10,000 goods order with a 30% deposit requires USD 3,000 upfront. If separately agreed tooling costs USD 2,000 upfront, the initial outlay becomes USD 5,000. These are hypothetical figures, not GCB prices or standard factory terms.
Define what the balance payment is waiting for
“Before shipment” needs a clearer trigger. Confirm the production stage, inspection scope, required records and the process for addressing any failed checks before payment release.
Leave time for correction and reinspection in the schedule. An urgent shipment date can make a buyer feel forced to pay despite unresolved issues. Agree how those issues will be handled while you still have time to choose.
Discuss alternatives that fit the project
Depending on the factory and product, you might discuss a smaller trial order, separate tooling payments or a milestone arrangement. These are negotiation possibilities, not terms every supplier will accept.
A smaller first order may lower the total money exposed even if its deposit percentage is higher. Compare the amount and the evidence you gain. A very low deposit from an unsuitable supplier is not necessarily a better commercial arrangement.
Record cancellation and change arrangements
Ask what happens if the buyer changes the design, the factory cannot meet the agreed requirement or the project stops. Identify purchased materials and completed work, and record how any unused funds or disputed costs would be handled.
Do not assume a deposit is always refundable or always forfeited. The arrangement and applicable law matter. For significant commitments, have the actual agreement reviewed by a qualified professional.
A practical decision before saying yes
You should be able to name the verified recipient, identify the confirmed product, explain what starts after payment and describe the next evidence checkpoint. If one of those answers is missing, settle it before deciding.
The aim is a payment plan that gives the factory a workable start and gives you a clear view of the commitment. A percentage without those details does little to organize the project.
Bryan's view
I would ask what the 30% is doing in this particular order. If the product and factory plan are clear, we can discuss the payment on that basis. If important questions remain open, GCB can help organize the next verification or production discussion before you commit.
Meet Bryan and see how we work
I'm Bryan, the founder of Global China Bridge, based in Beijing. I help overseas entrepreneurs and small businesses clarify and coordinate product and manufacturing work in China.
Helping your business move forward gives ours a foundation to grow. Work you entrust to us deserves careful attention, clear communication and follow-through on the tasks we agree.
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Questions buyers often ask
Is a 30% deposit a legal requirement?
No universal requirement makes 30% the correct deposit for every order. Treat it as a proposed term and review your specific arrangement.
Does 30/70 mean the supplier is reliable?
No. Reliability needs separate verification of identity, capability and how the order will be managed.
Can I ask for a lower deposit?
You can discuss it, explaining the order and your concerns. The factory may accept, decline or propose another arrangement.
Should I pay the balance before inspection?
Agree the inspection and payment sequence before ordering. If checks are a payment condition, review their results and unresolved issues first.
Is the deposit refundable if I cancel?
Do not assume so. Confirm the agreed cancellation terms and costs already incurred, and seek professional review where necessary.
What is a useful first step for a small business?
Confirm the product stage and supplier, then assess a first order or trial run with an amount of exposure you can manage.
Discuss the deposit in the context of your order
Send the product, order value, separate upfront charges and proposed payment stages. The first conversation is free. If you need supplier verification or help clarifying the order, we will define that task and its fee first.
Prefer email? Write to service@globalchinabridge.com.
Updated: October 9, 2026