Summary: office furniture factories in China generally work on T/T 30/70 — a 30% deposit when the PO is confirmed, and a 70% balance after inspection and before the container is loaded. On a first order, the safest approach is to pay into a company account whose name matches the proforma invoice, request the inspection report before the balance, and have the HS code and Form E agreed in writing from the start. A sight L/C makes sense for large orders or an unknown supplier; for repeat orders, T/T is cheaper and faster. This guide gives a method comparison table, the payment schedule from PO to container arrival, and the red flags to watch in transfer instructions.
The five payment methods used in office furniture imports
In practice, almost every Foshan import lands in one of the five patterns below. What separates them is not only the deposit percentage but who carries the risk while the goods are still in the factory.
| Method | How it works | Extra cost | Buyer risk | Best for |
|---|---|---|---|---|
| T/T 30/70 | 30% deposit on PO, 70% after inspection and before ETD | Bank transfer fees, usually tens of dollars per payment | Money leaves before loading; reduced by inspection and contract terms | Standard orders, mixed containers, repeat orders |
| T/T 20/80 | 20% deposit for buyers with several completed orders | Same as T/T | Same, with smaller exposure | Repeat orders with a clean payment history |
| T/T 50/50 | 50% deposit, 50% before shipment | Same as T/T | Heaviest cash-flow load upfront | Fully custom items (size, colour, logo) that cannot be resold to another buyer |
| Sight L/C | Bank pays once documents comply with the L/C terms | Opening, amendment and correspondent bank fees | High cost and zero tolerance on documents; protection if the supplier fails to ship | Large order values or a new supplier |
| Trade Assurance / escrow | Funds held by the platform until shipment | Platform fee; limited value ceiling | Protection limited by value and dispute type | Small orders, samples, first trial |
The 20/80 and 50/50 structures are not standard requests on a first order. Both are negotiated based on transaction history and order value.
Why factories ask for a 30% deposit
The 30% deposit is not factory margin. It buys panels, HPL, hardware and fabric before production starts, books a slot on the panel and finishing lines, and covers the risk of custom goods that cannot be sold to another buyer if the order is cancelled mid-production.
A deposit request is therefore not a red flag by itself. What matters is where the money goes: the beneficiary name must match the company name on the proforma invoice, not an individual, and the account must be in the factory's country.
For the buyer, a deposit is not a quality guarantee either. Quality comes from three things: a written specification on the PI (material, panel thickness, finish, dimensions), a pre-shipment inspection with photos per item, and a written warranty after arrival.
Payment schedule from PO to container arrival
The table below is the sequence we use for standard container orders. All timings run from receipt of the deposit and colour confirmation.
| Stage | Approximate timing | Documents | Payment |
|---|---|---|---|
| PO, colour and layout confirmation | Day 0–3 | Proforma invoice, working drawings, specification | 30% deposit |
| Panel production, finishing, assembly | Day 4–30 | Progress report and production photos | — |
| Pre-shipment inspection | Day 30–35 | Inspection report, photo and video per item | — |
| Balance and vessel booking | Day 33–37 | B/L draft, packing list, final invoice | 70% balance |
| Shipment | ETD | B/L, Form E, commercial invoice, packing list | — |
| Arrival in Jakarta or Surabaya | 7–14 days after ETD | Import declaration, release note | Duty, VAT, import income tax |
A 25–35 day production lead time plus 7–14 days at sea makes the full cycle from PO to warehouse roughly 5–7 weeks. The stage-by-stage breakdown is in the production lead time guide, and the cost components after arrival are in the landed cost guide.
Documents to check before paying the balance
The 70% balance is the point where most of the buyer's money leaves. Before transferring, request and check six documents:
- Final invoice with quantity, size, colour and HS code per item — not just a total value.
- B/L draft: the shipper must be the factory, the consignee must be your company, and the package count must match the packing list.
- Packing list per item and per carton, so it can be reconciled during unloading.
- Inspection report with photos and video, including drawer open-close tests, top-load strength and hardware completeness.
- Form E under ACFTA: it is issued after shipment, so confirm the factory's commitment to send it and that its HS code matches the invoice. The process is explained in the Form E guide.
- Insurance policy when the terms are CIF; the insured value must at least match the invoice value.
If a document is missing, do not withhold the balance without communication — but do not transfer simply because a vessel is scheduled either. Sailing dates move; wrong documents cost far more.
L/C or T/T: when each one makes sense
An L/C puts a bank between buyer and factory: the bank pays only when the documents comply with the L/C terms. The protection is real, and so is the cost — opening an L/C typically costs 0.1–0.5% of the value per month (indicative, bank-dependent), plus an amendment fee every time something changes, plus correspondent bank charges on the factory side.
For a first order below USD 20,000, the L/C cost rarely justifies the protection. For orders in the tens of thousands of dollars and above, or a supplier you have not used before, a sight L/C or a 30% T/T plus 70% L/C combination is a reasonable compromise. For repeat orders with a proven supplier, T/T 30/70 is almost always cheaper and faster.
Red flags in payment instructions
- A 100% deposit request on a first order, especially without a contract or inspection.
- A personal account or a third-country account while the factory is in China. The beneficiary must match the company on the PI.
- A price 30–40% below other quotes for the same specification — usually thinner panels or downgraded hardware.
- Refusal of a video call from the production floor, or refusal to show machines and material stock.
- No HS code on the invoice, or a Form E promised “later” without a number and date.
- Booking or survey fees requested to a personal account before any formal PI.
None of these is automatic proof of fraud, but each is a good reason to slow the transfer down and ask for additional evidence.
How to negotiate payment terms
Payment terms are part of the price and can be negotiated like the unit price. The most effective sequence:
- Start from 30/70 and have it written into the PI, including whether the balance is triggered by completed inspection or by ETD.
- Build a track record: after two or three containers paid on time, ask for a 20% deposit or for the balance to move to “against B/L draft”.
- Consolidate orders to a full 40HQ — volume buys more negotiating room than splitting orders.
- Ask for a written schedule commitment: a late-delivery clause with compensation is worth more than a 1–2% discount.
A 40HQ of office furniture is typically worth USD 11,400–30,500 FOB, so the deposit percentage moves working capital directly. Per-product simulations are in the 40HQ container price guide, and how to compare factory quotes is in the quote comparison guide. For mixed-container composition see the MOQ guide and shipment insurance.
Frequently asked questions
What deposit is standard for importing office furniture from China?
Usually 30% of the invoice value, with the 70% balance paid before shipment after inspection. On repeat orders a 20% deposit can be negotiated.
Can I pay after the goods arrive?
Rarely on a first order. Some factories accept the balance against a B/L draft for long-standing partners, and a sight L/C for large values. Thirty-day terms after arrival are normally reserved for distributors under a written agreement.
Do Chinese furniture factories accept L/C?
It is negotiable, especially for large order values. Opening and amendment costs are carried by the buyer, and the documents must match the L/C terms word for word.
What should I do if goods arrive damaged?
Record it in the unloading report, photograph and video each carton, claim on shipment insurance when the terms are CIF, then file the claim with the factory quoting the invoice number. Production defects fall under the 5-year structural warranty; transit damage falls under the insurance claim.
Verifiable company facts
- Legal entity: Foshan BG Office Furniture Co., Ltd. — 佛山市毕戈家具有限公司 (USCC 91440606MA4UKCYD6A)
- Founded: 2015 — 10,000 m² ISO 9001 certified factory in Lecong, Shunde, Foshan, Guangdong, China
- Export experience: 50+ countries, including importers, dealers and project contractors in Indonesia
- Services: OEM/ODM, mixed containers, Form E ACFTA, T/T 30/70 terms, 25–35 day lead time, 5-year structural warranty
To request a proforma invoice with HS codes, specification and written payment terms, send your requirement list and destination city through the contact form, email sales001@fsbige.com, or call/WeChat +86-18928562556. The desk, workstation and filing cabinet catalogue is on the product page.