How Do I Handle Payments Without Risk When Ordering Jeans from China?

You worry about sending large sums of money overseas. What if there are delays or mistakes? This financial uncertainty can be a huge source of stress for your brand.

I’ve seen how unclear payment terms can sour a good partnership. Money conversations can be awkward, but they don’t have to be. In my factory, we believe in being upfront and transparent about every aspect of payment. There should be no surprises. 

You need a payment method that is secure and works for your business. You are worried about complex international systems or being forced into a high-risk payment option.

For over two decades, I’ve found that keeping things simple and secure is the best way. That’s why Telegraphic Transfer, or TT, is our most common method. It’s a direct bank-to-bank wire transfer. We split it into two simple parts: a deposit to start production and a final balance payment before we ship. This works great for most orders.

 For very large orders, especially with a new partner, a Letter of Credit (L/C) is an excellent option. This is basically a promise from your bank to pay us once we prove we have shipped the goods as promised. It protects you completely. 

You need to place a deposit, but you’re unsure if the amount is fair. A high deposit ties up your cash flow and feels risky before production has even begun.

The deposit is not just a payment; it’s the official start of your project. It’s the moment we go from planning to action. As soon as your deposit is received, my team immediately starts working for you.

We purchase the exact amount of denim needed, order your custom trims and hardware, and book a slot for you on our production calendar. The amount of the deposit is based on risk. For a standard order using our popular fabrics, a 30% deposit is enough to cover these initial material costs. 

You want to manage your cash flow with payment terms like net-30. You are afraid to even ask, thinking a factory in China will immediately say no.

I understand that payment terms are crucial for managing your business’s cash flow. In an ideal world, we could offer net-30 or net-60 terms to everyone.

 However, as a manufacturer, we also have large upfront costs for materials and labor. Extending credit is a significant financial risk for us. Because of this, we build up to net terms based on trust and history.

 A brand that has worked with us for over two years, places consistent, large orders every quarter, and has always paid on time is a partner we can trust with net terms. For new clients, this level of trust simply isn’t there yet. 

You agree on a price in USD. Then, the exchange rate changes, and you’re worried your final invoice will suddenly be much higher, destroying your profit margin.

The global currency market is unpredictable, but your invoice shouldn’t be. When we prepare your proforma invoice (PI), we do all our internal calculations in Chinese Yuan (CNY). Then, we convert that final total to US Dollars (USD) using the exchange rate on that day. That USD amount is what goes on your invoice, and it is locked in. It will not change. 

Clear payment terms are the foundation of a great partnership. We focus on secure methods, fair deposits, and stable pricing so you can focus on building your brand.