Casual Chic Linenwear Custom Manufacturing
How Do Payment Terms Work with a Linen Clothing Manufacturer?
LINENWIND B2B SOURCING ANSWER
How Do Payment Terms Work with a Linen Clothing Manufacturer?
Payment terms with a Chinese linen clothing manufacturer follow a standard, protective structure: a 30% deposit when the order is confirmed and production is scheduled, and the 70% balance before shipment, normally paid by bank transfer (T/T), with the balance due against the pre-shipment inspection result rather than blindly in advance. At LINENWIND, a Dongguan linen clothing manufacturer with 20+ years of OEM and ODM experience, the sequence is: you sign a proforma invoice that states the full price, payment schedule, Incoterm and currency; you pay the 30% deposit so we can book and cut your fabric and start the 25-35 day bulk run; we produce, inspect the goods to AQL 2.5, and share the inspection result with you; you pay the 70% balance; and we ship with the export documents released to you. This 30/70 split protects both sides: the deposit covers the fabric and cutting the factory commits at the start, and the balance-before-shipment rule means goods are never shipped unpaid while you never pay for goods that have not passed inspection. For larger first orders, protective mechanisms such as a letter of credit or an escrow arrangement can be discussed, and any arrangement must be confirmed in writing on the proforma invoice before production starts. The full negotiation context, including how payment terms sit inside the wider pricing, MOQ and sampling conversation, is covered in our same-day guide on how to negotiate with a linen manufacturer.
- Short answer: 30% deposit to start production, 70% balance before shipment, by T/T, with the balance tied to the AQL 2.5 pre-shipment inspection result.
- Deposit: paid against the signed proforma invoice; it funds fabric booking, cutting and line setup.
- Balance: paid before shipment, after inspection, so the goods leave only when paid for and paid for only when verified.
- Method: T/T bank transfer is the standard; L/C and escrow are protective options to confirm per order, in writing.
- At LINENWIND: MOQ 60 pieces per style per color, counter samples 7-12 days, bulk 25-35 days, first orders 35-60 days; sample fees of $40-150 are fully credited on the first bulk order of the same style.
- Never: pay 100% upfront before sampling or production; that payment pattern is what fraudulent suppliers exist to collect.
The Three Payment Structures You Will Meet
T/T Deposit and Balance
The standard structure for custom manufacturing: 30% by bank transfer to start, 70% before shipment. Simple, traceable and low-cost, it works for first orders and reorders alike, and it is what most Chinese linen factories quote as their default.
Letter of Credit (L/C)
A bank-guaranteed documentary payment used mainly for larger orders. The buyer's bank promises payment against shipping documents that prove shipment, which protects both sides, at the cost of bank fees and document discipline. Whether a factory accepts L/C for your order size must be confirmed when the PI is issued.
Escrow or Platform Payment
An intermediary holds the funds and releases them when both sides confirm the milestone, which is useful for new relationships or online-sourced suppliers. Terms, fees and release conditions vary by provider, so they belong in writing before the deposit moves.
How a Payment Runs on One Order, Step by Step
The practical sequence below is what happens between signing and shipping on a custom linen order at LINENWIND. It answers the question most buyers actually mean when they ask how payment terms work: not just the percentages, but when each payment happens and what it pays for.
1
Sign the proforma invoice. After quotation and sample approval, we issue a PI stating unit prices, quantities, the 30% deposit and 70% balance schedule, the Incoterm (normally FOB Shenzhen or EXW Dongguan), currency, and the expected production window. The PI is the contract; everything you negotiated belongs in it.
2
Pay the 30% deposit. The deposit confirms the order and funds what the factory must spend immediately: booking your fabric, cutting markers and reserving line time. Production scheduling starts from deposit confirmation, which is why the deposit date, not the inquiry date, sets your delivery calendar; the full order sequence around the deposit is described in our answer on how to start a custom linen order.
3
Bulk production runs 25-35 days. Cutting, sewing, washing and finishing follow the approved PP sample. During this window the factory holds your fabric and work-in-progress, which is exactly what the deposit protects; the balance protects the factory only at the end, which is why it is scheduled before shipment rather than after.
4
AQL 2.5 pre-shipment inspection. Finished goods are inspected against the AQL 2.5 sampling plan, with third-party inspection available on request. The inspection result is shared with you, and this is the gate that makes balance-before-shipment safe for the buyer: you pay for goods whose quality you have already verified.
5
Pay the 70% balance; documents release. Once the balance clears, the goods ship by sea or air and the export documents, commercial invoice, packing list and bill of lading or airway bill, are released to you for import clearance at destination, the import-side process covered in our guide on importing linen clothing from China.
The Payment Milestones at a Glance
| Milestone | When It Happens | Amount | What It Pays For / Triggers |
|---|---|---|---|
| Order confirmation | After sample approval and PI signature | 30% deposit | Fabric booking, cutting markers, line reservation; starts the production clock |
| Pre-shipment inspection | End of bulk production (25-35 days) | None (included) | AQL 2.5 sampling; third-party inspection on request; result shared with buyer |
| Before shipment | After inspection passes | 70% balance | Clears the goods for loading; export documents released on payment |
| After shipment | Goods in transit | 0 | Freight, insurance, import duty and clearance follow the agreed Incoterm, not the factory payment schedule |
The 30/70 split is the standard first-order structure for custom garment manufacturing in China and the default at LINENWIND. Percentages, methods and milestones can be adjusted for reorders or multi-season programs, and every variation must appear on the PI; see the negotiation guide on pricing, MOQ and payment terms for how those adjustments are discussed.
- Confirm the deposit percentage and exactly what it triggers before you pay.
- Confirm the balance condition: before shipment, after the AQL 2.5 inspection result.
- Confirm the receiving bank account is the factory's registered company account.
- Confirm the PI validity and what happens if fabric or labor costs move before production.
What the Proforma Invoice Should State Before You Pay Anything
A proforma invoice is a payment contract, not a courtesy document. If a line is missing from the PI, it is missing from the agreement, so check the PI against this list before the deposit leaves your account. The same discipline appears in our answer on how to start a custom linen order, which walks the full order sequence around the PI.
Unit prices and total amount in an agreed currency
Deposit percentage and due date (30% standard)
Balance percentage and the condition that triggers it (70% before shipment)
Bank details: company account in the factory's registered name
Incoterm and port, FOB Shenzhen or EXW Dongguan, or the agreed alternative
Production window and ship date commitment
Inspection arrangement: AQL 2.5 standard, third-party option
PI validity period and any sampling credits carried into the order
Payment Method Facts Worth Knowing
T/T: the standard; low fees, traceable, paid in two stages at 30/70. Works for most buyers and all order sizes we produce.
L/C: bank-guaranteed against documents; suits large or first orders where both sides want bank-level assurance; fees and conditions confirmed at PI stage.
Escrow: neutral-holder release; useful for new online-sourced relationships; provider fees and release rules confirmed in writing.
Currency: USD is the usual invoice currency for export; exchange-rate terms belong on the PI so the deposit and balance are calculated the same way.
Payment Red Flags to Walk Away From
100% upfront before sampling or production. No legitimate custom manufacturer needs full payment before it has bought your fabric; this is the single most common pattern in supplier fraud. A personal bank account. A real factory invoices through its registered company account; a private account is a warning sign. No written PI. If a supplier asks for money before issuing a PI with amounts, schedule and terms, treat it as a refusal to be accountable. Pressure to skip inspection. A supplier who pushes you to pay the balance before the AQL 2.5 result is asking you to buy sight unseen. Before sending any deposit to a new supplier, run the factory verification checks that separate real manufacturers from trading fronts, and remember that payment terms are negotiated together with price, MOQ and sampling in the same conversation, as our negotiation guide explains.
Planning a custom linen order and want the payment schedule, MOQ options and sampling terms spelled out on a proforma invoice before you commit? Send your line sheet or sketches through the inquiry form and our account managers will confirm the commercial terms in writing.
Send Your Inquiry Contact LINENWINDSources and related reading: same-day guide How to Negotiate with a Linen Manufacturer ｜ order journey How Do I Start a Custom Linen Order? ｜ trade terms What Incoterms Should I Know When Importing Linen Clothing? ｜ factory checks factory vs trading company due diligence. Payment structures are described in general trade terms; the exact schedule for your order is agreed per order and stated on the proforma invoice. LINENWIND, Dongguan, China: ISO 9001 / OEKO-TEX Standard 100 / SEDEX; MOQ 60 pcs per style per color; samples 7-12 days; bulk 25-35 days; AQL 2.5.
