First China order: when do I need the money?
You need cash from sampling onwards, then at the agreed purchase-payment, checking and shipping stages, with import charges and launch costs allowed for before sales receipts reach your bank. Fund the trial without relying on early sales. Ask for an itemised quote and payment triggers from Cambridge China Bridge.
Before samples: set aside the trial money
Decide how much cash you can leave tied up in the trial while still covering household essentials and ordinary business bills. Use the first-order quantity forecast to keep the batch within that limit. For your first attempt, check whether you can cover the planned spending through launch without any sales receipts.
Ask for the sample price, courier charge, revision costs and any tooling payment before approving work. If a sample payment will be credited against an order, get that agreement in writing. You still need the cash when the sample bill falls due; a later credit does not fund it.
Before ordering: confirm every purchase payment
Ask who will invoice you and what their quote includes. Copy each agreed payment trigger and due date into your plan, including any deposit, production payment and balance. Do not assume a standard split or that the balance waits until stock reaches you. Confirm the currency and bank-transfer charges too.
Before committing, check that enough money remains for checks, transport, import charges and selling preparation after the purchase payments. Avoid counting costs again if they are already included in a delivered quote. Discuss simpler packaging or stock products through our small-order service if the complete trial exceeds your cash limit.
Before releasing money: budget for the checks
Ask what supplier checks, sample checks, batch inspection and product testing the quote covers, and when any separate bill is payable. Factory audits and inspections are usually included in the quote; complex checks that need a third party are charged separately and agreed in advance.
Agree what evidence you need before approving the relevant purchase payment. Ask how a failed check, correction or repeat inspection would affect costs and payment dates. Keep money available for separately quoted work rather than assuming the original check covers every revision. A delivery delay does not automatically change an agreed payment deadline.
Before dispatch and delivery: fund the journey
Get the freight provider's payment schedule before authorising dispatch. Ask about collection, freight, clearance, final delivery and excluded charges, including storage if delivery is delayed. Identify which bills fall before collection, during transit or before delivery. Ask the customs agent to confirm the import-charge amounts and payment route for your shipment.
If you are not VAT registered, budget import VAT as a cost rather than an expected refund; see importing without VAT registration. UK VAT registration is required for postponed VAT accounting. Confirm with HMRC or your customs agent whether your imports qualify, whether upfront import VAT can be avoided and which recovery rules apply. Ask your accountant to confirm the treatment before reducing your cash allowance.
Before selling: leave money for the launch
Arrival still leaves work to fund. List the costs relevant to your channel: receiving and checking stock, storage, photographs, listings, labels, packing materials, advertising and customer delivery. Ask which are paid upfront, invoiced later or deducted from sales receipts. Keep a cash allowance for returns and refunds.
Use profit and cash planning to distinguish a margin on paper from money available to spend. Deduct marketplace fees from expected receipts if the platform withholds them; do not also enter the same fee as a separate bank payment. Our ecommerce seller service is relevant when discussing product and packing needs for your selling channel.
After a sale: wait for money in your bank
Check your own marketplace account for payout timing, any reserve or hold, fee deductions and the bank-transfer stage. Ask whether a new seller account has different arrangements. An order notification or platform balance is not yet spendable bank cash. Use the expected bank receipt date, and leave uncertain receipts out of the money available for committed bills.
Put the confirmed dates into the cash-flow calendar. Test a later launch, slower selling and later payouts while keeping purchase-payment deadlines as agreed. If the remaining cash cannot cover the trial and essential bills, reduce or postpone the order before committing. Decide on replenishment after reviewing actual receipts, selling costs and unsold stock.
Frequently asked questions
Do I need all the money before placing my China order?
Not every bill is necessarily due when you order. Know the agreed dates and have a credible way to fund the whole trial through launch. Do not rely on early sales to pay committed bills.
Will my sample payment come off the order price?
Ask the supplier and get any credit agreed in writing. Include the sample payment when it leaves your bank and apply the credit only to the invoice where it is actually used.
Can postponed VAT accounting pay for my stock?
No. Confirm with HMRC or your customs agent whether your imports qualify for postponed VAT accounting, whether upfront import VAT can be avoided and which recovery rules apply. UK VAT registration is required. Goods, freight, duty and selling costs still need funding.
Can I use marketplace sales to pay the supplier balance?
Only count money expected to reach your bank before the agreed balance deadline. Check your account's payout arrangements and deductions. For an untested trial, plan to cover committed payments without early sales.