When placing a large order for outdoor benches, understanding payment terms is crucial for both buyers and suppliers. Standard payment structures typically include an initial deposit followed by scheduled payments tied to production milestones. Most manufacturers require a 30-50% deposit to commence production, particularly for custom designs or specialized materials. This secures raw materials and allocates factory capacity for your project.
Following the deposit, progressive payments are commonly structured around key production stages. A second payment of 30-40% is often due upon completion of production or before shipment. The remaining balance is typically payable upon delivery or within 30-60 days after delivery (net terms). For exceptionally large orders or long-term contracts, some suppliers offer extended payment plans or financing options.
Several factors influence these terms, including order volume, customization requirements, and your company's credit history. Established businesses with strong credit may negotiate better terms, while first-time buyers usually encounter stricter requirements. International orders often involve letters of credit for security, and bulk purchases may qualify for early payment discounts.
Always request a detailed payment schedule in your contract, specifying exact percentages and triggering events. Reputable suppliers provide transparent breakdowns and welcome discussions about terms that work for both parties. Remember that clear payment terms protect your investment while ensuring manufacturers can maintain quality throughout the production process.