Chinese supplier wants a deposit: is it normal?
Yes, a deposit before production and a balance against shipping documents or after a pre-shipment inspection are common. Full payment before dispatch without inspection, a different account name, or a payee that does not match the invoice and contract are red flags. Cambridge China Bridge can check your quote, supplier and payee.
Is the payment request normal for your order?
If you are buying outside the UK and have just received a Chinese factory or trader's quote, a deposit request is not itself a warning sign. The important questions are who receives the money, what the deposit funds and what evidence you receive before paying the balance.
Common does not mean safe. Before the first payment, agree the specification, inspection and payment triggers in writing. Treat pressure to pay in full without inspection, unexplained company names and changing bank details as reasons to pause.
Check the numbers with the free China supplier quote checker before you pay.
| Payment pattern | What it means | Buyer risk | Safer alternative to request |
|---|---|---|---|
| Deposit, then balance against a bill of lading copy | You fund production, then pay when the seller sends the agreed shipment document copy. | A shipment document does not prove product quality. A copy alone does not settle how you will obtain the goods. | Agree inspection before shipment, verify the document with the carrier and confirm the original-document or release arrangements before paying. |
| Deposit, then balance before dispatch | You fund production and pay the remainder while the goods are still at the factory. | You may pay before anyone has checked the actual goods. | Make the balance conditional on an accepted pre-shipment inspection report and correction of recorded faults. |
| Full payment upfront | You pay the whole order before production or dispatch, as the quote specifies. | Without inspection or agreed safeguards, you have paid before confirming acceptable goods. | Request staged payments with a balance retained until inspection passes. Ask your bank whether a letter of credit suits the purchase. |
| Payment to a third party or different company name | The requested beneficiary is not the seller shown on your order documents. | You may pay an unexplained company or someone unconnected with the sale. | Pause. Verify the proposed seller and payee independently, resolve their roles and obtain matching invoice, contract and company-account details. |
What does a bill of lading copy prove?
A bill of lading copy is a reproduction of the shipment document. Use it to check the shipment details, then verify it independently with the carrier or your forwarder. As the wood pellet machine case explains, shipment evidence does not prove that the machine passed its agreed test.
An original and a reference copy are different. HMRC describes presentation of an original as evidence of entitlement to receive the goods. Before agreeing payment against a copy, ask the carrier: 'Will collection require the original, or will you confirm a telex release or sea waybill arrangement? Who authorises release, and what confirmation will we receive?' Do not assume the emailed copy answers those questions.
Check the seller and the account before paying
As a payment checkpoint, require the seller name on the proforma invoice, contract and bank account to match the same verified company. Ask for its exact Chinese registered name, business licence and unified social credit code. Compare the registered company independently through China's National Enterprise Credit Information Publicity System. The registry could not be opened for this draft, so its current search instructions are not reproduced here.
If the beneficiary differs from the seller shown on Alibaba or the invoice, pause. A trading company explanation needs supporting documents and corrected, consistent paperwork. Never pay a personal account for a company sale. Confirm changed bank details through a contact you already verified. A registry record alone does not establish who controls the receiving account. For sanctions concerns after payment, see our guide to suspected supplier payment sanctions breaches.
Bank transfer or letter of credit?
A bank transfer sends money to the account you authorise. Do not treat successful payment as supplier verification or acceptance of the goods. Agree when each transfer becomes due and what inspection evidence you must accept first.
A letter of credit is a bank undertaking to pay under its stated conditions, supported by the required evidence. Ask your bank to explain the proposed documents and conditions before you agree. Request an inspection report among the payment documents where suitable, and arrange the actual inspection separately. Choose the method around the order's risks rather than the supplier's preference alone.
Pause until the factory answers in writing
Ask: 'Please send a revised proforma naming the buyer, seller and company bank beneficiary, with the exact goods and specification. What does the deposit fund? What event makes the balance payable? Who will inspect the actual goods before the balance, and what happens if they fail? Which shipment documents will you provide, and how will the carrier release the goods?'
Agree the inspection brief before production. For machines, specify a test of the actual unit that will ship; for other products, specify the finished-goods checks. Pause if inspection access is refused, identities remain unexplained or 'balance when ready' has no clear evidence requirement. For destination requirements, check with the authority or your clearing agent; in the Philippines, check with your licensed customs broker or the Bureau of Customs.
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Choose the case guide and send your quote
For machines, use the Ghana block making machine quote check, Georgia wood pellet machine quote check or Philippines rice milling machine quote check. Each turns the general payment questions into checks for the quoted equipment.
For machines and other products, use how to read a Chinese proforma invoice, clarify the balance payment trigger and negotiate a lower factory deposit. If your order has already reached the balance stage, use what to check before paying the balance, which focuses on UK buyers at that later checkpoint.
Send the quote, specification, business licence and proposed bank details for a quote check. Cambridge China Bridge is a UK company with its own staff in China and can check the quote and verify the supplier and payee. Factory audits and inspections are usually included in the quote; complex checks that need a third party are charged separately and agreed in advance. Third-party testing is extra and agreed first.
Frequently asked questions
Is a deposit to a Chinese factory normal?
Yes, a deposit before production is common. Check the seller and company account first, and agree the specification, inspection and balance-payment trigger before sending money.
Should I pay in full before dispatch?
Full payment before dispatch without inspection is a red flag. Ask for staged payments and an accepted inspection of the actual goods before the balance.
Is paying against a bill of lading copy safe?
A copy is shipment evidence, not a quality check. Verify it with the carrier, inspect before shipment and confirm how originals or the agreed release arrangement will let you collect the goods.
The bank name differs from Alibaba: should I pay?
Pause if the beneficiary differs from the seller. Require independently verified company identities and consistent invoice, contract and bank details. Never pay a personal account for a company sale.