Sourcing glossary
Deposit and balance
Also known as: 30/70 payment, Down payment and balance, 定金和尾款, 선금·잔금
The common China payment structure in which the buyer pays a deposit (often 30%) to start production and the balance (often 70%) before shipment or against shipping documents.
The split is negotiable: 30/70 and 50/50 are common, small orders are often paid 100% upfront, and some suppliers accept the balance against a copy of the bill of lading. Your leverage is the unpaid balance, so schedule the pre-shipment inspection before the balance is due and make payment conditional on passing it.
State in the PI whether the balance is due "before shipment" or "against B/L copy" — the second gives you more protection. See how to pay Chinese suppliers.
Related terms
Part of Incoterms & Payment.