Payment Terms with Bag Suppliers: TT, LC, Deposit Structures
Published: August 15, 2026 | 6 min read
Payment terms are where trust is formalized. Get them right and both sides sleep; get them wrong and someone eats the risk - tie them to your landed cost plan.
Common Methods
T/T (bank wire) is standard; L/C (letter of credit) suits large orders; PayPal or Escrow help small first deals.
Deposit + Balance
Typical: 30 percent deposit to start, 70 percent against inspection or before shipment. Never pay 100 percent upfront.
Protect Both Sides
Milestone payments on rush orders reduce risk.
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Frequently Asked Questions
What is a normal deposit?
Around 30 percent to begin production.
Is L/C better than T/T?
L/C protects the buyer on large orders but costs more and is slower.
Can I pay after delivery?
Rare for new accounts; balance is usually due before or at shipment.
Is PayPal safe for first orders?
It adds buyer protection for small deals; fees are higher.
Should I ever pay in full upfront?
No - full upfront payment to a personal account is a red flag.