A 30% deposit plus 70% balance is the most common structure, covering electronics, machinery, and consumer goods (Source: Alibaba public data). The 30/70 split is most frequently used for orders under $50k; it is faster and cheaper than Letters of Credit (L/C) (Source: chinamakershub public data).
The 30/70 model—30% upon PO confirmation and 70% upon presentation of the Bill of Lading—is the safest option for established business relationships (Source: AIKON public data).
This article breaks down T/T payment ratios.
I.
Overview of T/T Payment Ratios
- 30/70: Most common (Source: Alibaba public data).
- 50/50: Second most common (Source: CBNB public data).
- 100% T/T in advance: Small-value sample orders (Source: SS Management public data).
- 40% + 60%: Specific industries (Source: SS Management public data).
- 30% + 70% upon Bill of Lading: Standard practice (Source: AIKON public data).
- Purpose of deposit: Raw materials and production scheduling (Source: IHome public data).
- Balance payment milestones: Before shipment or upon presentation of documents (Source: Youna public data).
II.
Detailed Breakdown of Common Ratios
- 30% deposit: Paid after signing the Purchase Order (PO) (Source: IHome public data).
- 70% balance: Paid before shipment or upon presentation of documents (Source: Youna public data).
- 50/50: Split equally (Source: CBNB public data).
- 100% prepayment: Low risk for the seller (Source: Freight Forwarding Terminology Database).
- 100% post-payment: Low risk for the buyer (Source: Freight Forwarding Terminology Database).
- 40% + 60%: Applicable to certain product categories (Source: ShiShang Management public data).
- 40–60% deposit: Custom-made items (Source: Industry public data).
III.
Factors Influencing Ratio Selection
- Order value: Higher prepayment for small orders (Source: chinamakershub public data).
- Degree of customization: Higher customization requires higher prepayment (Source: Industry public data).
- Customer credit: New customers require higher prepayment (Source: Youna public data).
- Supplier cash flow: 30/70 split reduces pressure (Source: CBNB public data).
- Industry practice: 30/70 for electronics (Source: AIKON public data).
- Raw material cost proportion: High proportion leads to higher deposits (Source: Industry public data).
- Stage of cooperation: Ratios can be lowered for long-term clients (Source: Industry public data).
IV.
Balance Payment Milestones
- Payment before shipment: Common practice (Source: Youna public data).
- Upon presentation of Bill of Lading copy: Standard practice (Source: AIKON public data).
- After passing inspection: Secure option (Source: AIKON public data).
- Payment in full before arrival at port: Used in some cases (Source: Freight forwarder terminology database).
- Payment after receipt of goods: High risk (Source: Freight forwarder terminology database).
- Clear milestones: Specified in the contract (Source: chinamakershub public data).
- Fine print clauses: Protection lies in the details (Source: chinamakershub public data).
V.
Negotiation Key Points
- Default to 30/70 for new customers (Source: Youna public data).
- Increase prepayment for custom items: 40–50% (Source: Industry public data).
- Pay balance after inspection: Retain leverage (Source: SourcingXpro public data).
- Split L/Cs for large amounts: More secure (Source: chinamakershub public data).
- Deposit covers raw materials: Negotiate the ratio (Source: IHome public data).
- Clearly state ratios in the PO: Prevent disputes (Source: Industry public data).
- Forex hedging: Payment ratios do not affect this (Source: Industry public data).
VI.
Risk Considerations
- 100% deferred payment: Do not accept (Source: Shishang Management).
- Balance payment: Must be received before order release (Source: Industry data).
- Document consistency: Payment upon document presentation (Source: AIKON).
- Right of inspection: Retain until balance is paid (Source: SourcingXpro).
- Non-refundable deposit: Clearly specify breach terms (Source: Industry data).
- Exchange rate fluctuations: Lock in rates (Source: Industry data).
- Trend forecast: 30/70 split + inspection milestone to become standard for electronics B2B by 2026 (Source: AIKON).
VII.
FAQs
- What is the ratio? 30% deposit + 70% balance (Source: Alibaba).
- Is 50/50 possible?
Yes, in certain industries (Source: CBNB). - When is the deposit paid?
After signing the PO (Source: IHome). - When is the balance paid?
Before shipment / upon document presentation (Source: Youna). - For new clients?
Start with 30/70 (Source: Youna). - For custom items? 40–50% prepayment (Source: Industry data).
- Is 100% prepayment safe?
Safest for the seller (Source: Freight forwarder terminology database).
VIII.
Recommendations for Overseas B2B T/T Ratios
- Default 30/70: Pay after signing the PO (Source: Alibaba).
- Balance after inspection: Retain leverage (Source: SourcingXpro).
- Custom items prepayment: 40–50% (Source: Industry data).
- Large amounts via L/C: More secure (Source: chinamakershub).
- Include milestones in PO: Prevent disputes (Source: chinamakershub).
- Trend Reference: Overseas procurement in 2026—”30/70+” inspection milestones will become the standard (based on AIKON’s public data).
