The '100% Before Production' Ask, Decoded — And How to Push Back Politely
'We only accept 100% T/T in advance' is one of the most common openings in Chinese supplier fraud. It's also, occasionally, the reasonable position of a small OEM producing custom parts for a first-time customer. Distinguishing the two is the entire skill.
The industry-standard splits
30/70 T/T (30% deposit, 70% before shipment) is the modal term for OEM orders. 50/50 is common for custom moulds or long lead times. 30/40/30 (deposit, before shipment, after inspection) is what serious buyers push toward. 100% upfront is not a standard term — it's an outlier that always requires justification.
When 100% upfront is briefly defensible
Stock items under $2,000. Custom moulds with dedicated tooling. Second or third order with a supplier you've already verified and used successfully. Anything else and the answer is no.
What 100% upfront actually gets you
Zero leverage on quality, delivery date, or spec conformance. The supplier has been paid; anything they deliver is a bonus from their perspective. Every buyer story that ends 'and then they sent me half the units, wrong colour' started with 100% upfront.
The counter-negotiation script
'We understand your terms. Our accounting policy is 30% deposit against the pro forma invoice, balance against a copy of the B/L. This is standard for our other Chinese suppliers and we're happy to sign a formal PO reflecting these terms.' Say this once, politely, and stop. A real supplier will counter with 50/50 or 40/60. A fraudster will insist and walk away.
If you must accept unusual terms
Order through Alibaba Trade Assurance, which structurally protects deposits. Use a letter of credit — the bank holds funds against document conformance. Split the payment: half upfront, half on inspection. Or hire a third-party escrow. Never send 100% to a personal account. Never.
The verification step that saves the day
Everything above is negotiation. The check that actually protects you is confirming the entity behind the invoice is a real company with a real production capacity and no serious court record. That's a FactoryChecker report or an on-site audit. $129 or $1,000, respectively, against a $30,000 order is a rounding error.