Payment Terms & Fraud Protection for First Orders
Direct answer
What are your payment terms for a first order?
Payment is staged: a 30% down payment, then the balance against the Bill of Lading, no later than one week after the B/L is issued. A letter of credit is also accepted. A quoted price is valid for 5 working days, a Certificate of Analysis is issued for every lot, and a sample from every production lot is retained for five years.
The terms behind the FOB price
These are the payment terms behind the coconut sugar price per ton (FOB) and terms.
First-order protocol steps — staged payment
The buyer question, answered
If the worry is a supplier who stops replying once the deposit is paid, the answer is the order of events: what you pay, when, and what has happened by then.
- Quote. A quoted price is valid for 5 working days.
- Down payment: 30%. The order starts with a 30% down payment.
- Production. Lead time is confirmed on each quote, based on quantity and the production schedule. As a guide, one pallet (1.5 metric tons) is ready to load 2 working days from order confirmation, and one 20 ft container (about 14 metric tons) in 5 working days.
- Loading and the Bill of Lading. The consignment is loaded and the Bill of Lading (B/L) is issued.
- Balance. The balance is due against the Bill of Lading, no later than one week after the B/L is issued.
- Retained sample. A sample from every production lot is retained for five years.
The alternative: a letter of credit. A letter of credit is also accepted.
What the order costs once it has landed belongs to its own page: landed cost to the USA, a worked example.
Verify before you wire
Questions about a first order? Message the factory on WhatsApp.
Payment questions
Can I pay by letter of credit (LC)?
Yes. A letter of credit is also accepted. The other route is a 30% down payment with the balance against the Bill of Lading, no later than one week after the B/L is issued.
When is the balance due?
Against the Bill of Lading, no later than one week after the B/L is issued.
Is a retained sample kept from my lot?
Yes. A sample from every production lot is retained for five years, and a Certificate of Analysis is issued for every lot.