Supplier communication
China Factory Video Call Checklist for Overseas Buyers
Use this China factory video call checklist to prepare a focused product review, record observations and turn a remote walkthrough into clear…
A payment schedule is more than two percentages. Buyers and suppliers need to agree what each payment covers, when it becomes due, what evidence is required and how an exception will be handled. A clear schedule can connect the approved product and order documents to the production and shipping plan, while making the cash and performance risks visible to both parties. The examples in this guide are illustrations, not mandatory market terms or legal advice.
1. Define the total before discussing percentages
Identify the contracting seller and buyer, order reference, product version, quantities, unit prices, total amount and currency. Specify whether tooling, samples, inspection, packaging, freight or taxes are included in the amount to which the percentage applies. A deposit calculated on goods only differs from a deposit on goods plus tooling. Record whether bank and currency-conversion fees are paid by the sender, recipient or as separately agreed.
The proforma invoice checklist helps reveal missing price, product and delivery details before a payment decision. Compare that document with the purchase order and any sales agreement. If the totals, beneficiary or scope differ, resolve and document the discrepancy instead of sending a transfer against an unclear invoice.
- Named parties, order reference and approved product version
- Total payable, currency, included costs and exclusions
- Each milestone amount, due trigger and responsible reviewer
- Beneficiary details, bank fees and written change process
2. Write milestone amounts and conditions explicitly
For a fictional US$4,000 goods order, the parties might agree US$1,200 as a 30% deposit and US$2,800 as a 70% balance. Those numbers are an example, not a recommended or universal split. State exactly when the deposit becomes due and what the supplier will do after receipt. For the balance, specify the milestone, acceptable evidence, review period and due date. A calendar date alone may not describe what happens if production is late or the product is not ready.
Connect the milestone wording to the active purchase order checklist and the signed terms. For example, an agreement may require notice that the order is ready, a specified inspection result and a written acceptance decision before the balance is due. The parties must agree the exact conditions and practical timeline; a sample clause in an article cannot establish the legal effect of their contract.
3. Decide what counts as evidence and acceptance
Replace vague triggers such as “quality is good” or “production complete” with observable evidence. The parties might agree on the product version to inspect, quantity and packing stage, inspection provider or reviewer, report format, defect criteria and who signs off. Ask when the report will be delivered, whether the buyer can request clarification, and whether the balance is linked to a particular result or to a separate acceptance decision.
Prepare the pre-shipment inspection brief before scheduling the visit. A sampled inspection does not verify every unit or guarantee compliance, and a photo is not necessarily proof of quantity or performance. If the parties rely on documents or images for a milestone, identify their limitations and agree what happens when information is missing or a result is disputed.
4. Plan for a failed check, delay or change
Before paying, discuss how a failed inspection, short quantity, late delivery or unapproved substitution will be reported and resolved. Identify who proposes a remedy, who approves rework, how reinspection is scheduled and who pays the agreed extra costs. Define how a revised product, quantity or delivery date affects the invoice and payment schedule. The appropriate remedies and enforceability depend on the agreement and applicable law; involve qualified advisers when needed.
Avoid promising that an inspection automatically releases or stops payment. A payment obligation depends on the terms the parties agree, and the supplier may need time and information to correct a problem. Keep the active order, report, exception record and written decision together so that the finance team does not act on an outdated chat message.
5. Verify the payment recipient through an independent route
Confirm the legal seller, invoice issuer, beneficiary name, bank and account details and currency before instructing a transfer. If a different entity is named, ask for a clear explanation and review the arrangement with your bank and advisers before proceeding. A matching account name alone does not prove product quality or eliminate fraud risk. Keep approval and transfer authorization with the people responsible for those decisions.
For a change in payment details, pause and use the bank-detail change checklist: contact the supplier through a previously established, independently verified channel, not a number supplied in the change request. The FBI advises independently verifying changed account or payment instructions and acting promptly with the bank if a fraudulent transfer is suspected. Do not send passwords or verification codes to a purported supplier contact.
6. Consider payment methods and their limits
A direct advance bank transfer exposes the buyer to the risk of paying before receiving the goods; staged payments change when money is exposed but do not remove that risk. A letter of credit is a separate bank undertaking based on the documents and conditions specified in it. Banks examine documents rather than the underlying goods, so an LC is not a substitute for product verification. Availability, cost, document requirements and bank risk need discussion with the relevant bank.
Documentary collection, escrow or a marketplace payment service can have different release rules, fees, eligibility conditions and dispute procedures. Read the actual provider terms and confirm whether the proposed product, seller and transaction qualify. Do not assume that any method guarantees delivery, refunds or regulatory compliance. Select the method by agreement after considering the order size, relationship, costs and risks on both sides.
7. Put the agreement into a reviewable payment brief
A practical brief lists the total and currency; each percentage and amount; the event that triggers payment; the documents or evidence required; the review period; bank fees; the beneficiary; and the process for disputes, changes and delays. Example wording for discussion: “Balance is due after the buyer receives the agreed inspection report and confirms acceptance in writing within the review period stated in the order.” The final wording and consequences must be negotiated, reviewed and incorporated into the actual agreement.
Attach the active product specification, order, invoice and inspection requirements to the same project record. A China Sourcing Team sourcing request can organize those product and supplier questions for review; support starts from US$1,000 and scope is agreed after review. Payment decisions remain with the buyer and their authorized financial and legal advisers.
Sources and further reading
Service-specific information checked on 2026-10-27. Confirm the terms for your shipment with the selected provider.
Ready to organize a product?
Use the China sourcing request form for one item, review the completed sourcing brief example, or read about the guided Chrome helper for a multi-product project. Sourcing support starts from US$1,000 and is subject to scope review.
