Trade TermsPublished 2026-02-22Updated 2026-06-09

B2B Payment Terms: 50/50, 30/70, and Custom Splits

How to choose a payment structure that matches the order size, the supplier relationship, and the risk either side can absorb.

Key takeaways

  • 50/50 is the standard: 50% deposit on order confirmation, 50% balance before shipment. Suits standard items with medium lead times.
  • 30/70 works for larger orders where the buyer wants less upfront cash exposure — usually requires an established supplier relationship.
  • OEM / ODM projects benefit from milestone payments tied to sample approval, production start, and pre-shipment QC.
  • T/T remains the default for international B2B. L/C only earns its overhead when the deal is large or the relationship is new.

How B2B payment usually gets structured

International B2B kitchenware procurement runs on telegraphic transfer (T/T) in almost every case. Letters of credit exist, but the overhead rarely pays off below large order sizes or between parties that already trust each other. Below are the payment structures that cover most real orders.

50/50 — the standard

50% deposit on order confirmation, 50% balance before shipment
Fits standard items with moderate lead times
Balances risk evenly: the supplier has committed materials and production slots; the buyer sees the goods at inspection before the balance clears

This is the default we quote for repeat orders with established items. Unless something unusual is going on — a brand-new supplier, a very large order, or custom tooling — 50/50 is what lands on the PI.

30/70 — larger or tooling-heavy orders

30% deposit on order, 70% balance before shipment
Useful when the buyer wants to reduce upfront cash pressure on a bigger PO
Usually requires an established supplier relationship — a smaller deposit asks the supplier to carry more working capital

30/70 is also a common structure when the product needs tooling but the mould cost has already been paid separately. It's less appropriate for fresh, untested supplier pairings.

Custom — project-based milestones

For OEM / ODM projects, payment can be broken into milestones
Typical split: deposit on PI → payment on sample approval → payment on production start → balance before pre-shipment QC
Payments tied to specific deliverables reduce risk on both sides and improve the visibility of the project

Milestone payments are especially worthwhile when the project has a long tooling or design phase. Without them, either the supplier is financing the project, or the buyer has committed cash to a project that hasn't proven it will ship.

A note on currency, bank fees, and timing

Almost all of our quotes are in USD unless the buyer asks otherwise. Intermediary bank fees on T/T are normally borne by the buyer; factor a few dozen USD per wire into your cost model. Timing-wise: deposit wires typically clear within 1–3 business days; plan your PI signature accordingly if the production slot is tight.

Want us to apply this to your own sourcing?

Send the items, target quantities, and destination — we'll come back with a comparable quote pack, PI draft, and a realistic lead time within one business day.