Cambridge China Bridge
Free tool

China supplier quote and payment-terms checker

A Chinese factory sent a pro forma for three embroidery machines and wants 60% now, then 40% before loading: is this safe? Check what you would pay before you have evidence, and what to ask the supplier for before paying.

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Findings and supplier requests

  • Add any terms to see findings. Unanswered questions are not checked; no findings does not mean a supplier or payment is safe.

Worked example: three embroidery machines

Example terms: 60% deposit, 40% before loading. The checker returns high for the majority deposit and high for the balance before loading: all the money would leave before shipment. These terms do not prove fraud. Before paying, ask for a justified, smaller staged deposit, a written machine specification and approved sample or test criteria, and an independent pre-shipment inspection with an agreed remedy and payment-release condition. Verify the beneficiary and bank instructions separately; do not treat an invoice or a shipment document as evidence that the machines work.

  • High: More than half the order value would be paid before production.

    Ask the supplier for… A justified, smaller staged deposit tied to documented production milestones.

  • High: The full payment would leave before there is shipment evidence.

    Ask the supplier for… A revised balance-release condition tied to an agreed inspection and shipping evidence.

Before you accept the quote

Deposits and balance milestones shift risk

An advance funds production but puts the buyer’s money at risk before goods exist. Paying the remaining balance before loading leaves the entire payment exposed before shipment. A copy bill of lading is evidence of shipment, not proof of quality or control of the original documents. An agreed inspection can test the goods against written criteria before payment; arrival terms retain payment leverage until arrival but still need acceptance criteria and supplier agreement.

A pro forma is a quotation, not proof of performance

A pro forma invoice records proposed order details and payment terms. Its title alone does not establish whether a binding contract exists: acceptance, wording and applicable law matter. It does not prove production capacity, quality, delivery or a refund right. Agree the seller, specifications, delivery dates, inspection and rejection process, warranty and dispute terms in writing.

Payment-safety facts already on Cambridge China Bridge

Bank details changed in the middle of an order

After the deposit, an email from the supplier's usual address, or one that looks very like it, says the company's account has changed because of an audit, a tax matter or a currency problem, and asks for the balance to go to the new account. Either the supplier's mailbox has been taken over or someone is impersonating it, and the real supplier never receives the money.

What to do: Never act on a change of bank details received by email or chat. Confirm it on a phone or video call with the contact you already know, on a number you already hold, and ask for the change in writing on company letterhead with the company seal.

A personal account instead of the company's

The proforma invoice asks you to pay an individual, often described as the owner or the sales manager, rather than the company. It is sometimes offered as a way to avoid bank charges, but a payment to a person leaves you without a clear claim against the company if the goods are late, wrong or never sent.

What to do: Pay the company that issued the proforma invoice, into an account held in that company's name.

An account name that does not match the company on the PI

The beneficiary is a different company from the one named on the proforma invoice and the business licence: a 'sister company', a trading company or an offshore or Hong Kong company. There can be ordinary reasons, such as an export agent or a foreign-currency account, but it is also how a payment is diverted.

What to do: Ask in writing why the names differ, and have the company you are paying named on the proforma invoice and the contract.

Read the payment-safety checks

How the rules work

These are review prompts, not a fraud score, legal opinion or payment approval. High means substantial advance exposure or a payment-diversion warning; medium means advance exposure or an unresolved safeguard; note explains a limit or responsibility. A deposit above 50% is high because most of the value is exposed before production; any positive deposit up to 50% is medium. This is a CCB review threshold, not an industry benchmark. Paying the balance before loading is high regardless of the deposit. Other answered fields trigger the rules listed below; blank fields trigger nothing. No protective answer cancels a warning from another field.

  • Enter a percentage from 0 to 100 so the advance exposure can be checked.

    Ask the supplier for… A corrected deposit percentage in the written payment schedule.

  • More than half the order value would be paid before production.

    Ask the supplier for… A justified, smaller staged deposit tied to documented production milestones.

  • Any deposit puts money at risk before the goods are produced.

    Ask the supplier for… Written production milestones and remedies if production or delivery fails.

  • The full payment would leave before there is shipment evidence.

    Ask the supplier for… A revised balance-release condition tied to an agreed inspection and shipping evidence.

  • A copy bill of lading evidences shipment but does not prove quality or control of original documents.

    Ask the supplier for… Carrier-verifiable shipment details and written document-release and inspection conditions.

  • Inspection helps only when its scope, acceptance criteria and payment gate are agreed.

    Ask the supplier for… Written inspection criteria, access for your inspector and a remedy before balance release.

  • Arrival payment retains leverage but arrival alone does not establish acceptance.

    Ask the supplier for… A named arrival point, acceptance deadline and written defect-resolution procedure.

  • A company account does not by itself establish the supplier’s capability or delivery.

    Ask the supplier for… Bank-issued beneficiary details matching the contracting entity and its business licence.

  • Platform protection depends on the order terms and payment staying within its eligible process.

    Ask the supplier for… The agreed specification, inspection conditions and payment instructions inside the actual platform order.

  • A letter of credit pays against compliant documents rather than testing the actual goods.

    Ask the supplier for… Draft documentary requirements including an agreed inspection certificate, for your bank to review.

  • PayPal or card dispute rights depend on eligibility, terms and time limits.

    Ask the supplier for… An itemised commercial invoice and payment request you can check against the provider’s current protection terms.

  • An informal or irreversible payment route can make recovery and identifying the payee difficult.

    Ask the supplier for… A traceable company payment route and written beneficiary details before paying.

  • The beneficiary has not been checked against both the contract and business licence.

    Ask the supplier for… The business licence, signed contract and bank beneficiary evidence for a name comparison.

  • A pro forma alone may leave performance obligations and remedies unresolved.

    Ask the supplier for… An agreed written contract covering specifications, delivery, inspection, remedies and disputes.

  • Without written approval, the required product or sample is open to disagreement.

    Ask the supplier for… A versioned specification or approved sample record signed off in writing.

  • Without an agreed inspection, there is no agreed independent quality check before shipment.

    Ask the supplier for… Written inspector access, acceptance criteria and rework or rejection terms before final payment.

  • The quoted validity date is before today on your device.

    Ask the supplier for… A reissued quote confirming current terms and a new validity date.

  • EXW leaves most transport and export arrangements with the buyer.

    Ask the supplier for… The named collection place, loading arrangements and a written export-clearance plan.

  • FOB transfers risk when goods are on board at the named shipment port, with main carriage normally for the buyer.

    Ask the supplier for… The named shipment port and an itemised split of freight, insurance and import costs.

  • CIF includes carriage and insurance to the named destination port but risk passes on board at shipment.

    Ask the supplier for… The named ports, insurance cover and a breakdown of destination charges and import duty.

  • DDP assigns delivery and import clearance including duty to the seller, subject to the agreed named place.

    Ask the supplier for… The named delivery place, importer arrangements and written duty, tax and clearance responsibilities.

  • An unspecified trade term leaves the allocation of delivery costs and risk unclear.

    Ask the supplier for… The exact trade term, version, named place and written allocation of costs and risk.

  • Unclear inclusions or freight/duty exclusions inconsistent with CIF or DDP need clarification.

    Ask the supplier for… An itemised freight, insurance, duty, tax and destination-charge schedule consistent with the named term.

  • Order value changes the money exposed, not whether these terms prove fraud.

    Ask the supplier for… A milestone payment schedule and evidence package proportionate to the amount you could lose.

  • Bank instructions sent separately after a quote can be a payment-diversion attempt.

    Ask the supplier for… Confirmation of the bank instructions on company letterhead, verified by calling your established contact on a number already held.

  • A payment to an individual does not clearly connect the money to the contracting company.

    Ask the supplier for… An invoice and bank details payable to the contracting company rather than an individual.

  • A different beneficiary or third-country account needs independent verification before payment.

    Ask the supplier for… A written explanation of the payee relationship and matching payee details in the contract and invoice.

Official guidance behind the checks

Questions about supplier payment terms

Is a 60% deposit and 40% before loading safe?

It exposes the whole payment before shipment and is high exposure under this tool’s rules, but does not prove fraud. Ask for staged payments tied to written specifications, a pre-shipment inspection and agreed release conditions; verify the beneficiary before any payment.

Does a matching company bank account mean the supplier is safe?

No. Matching names helps check the payee, but does not establish manufacturing ability, product quality or delivery. Verify the supplier separately and confirm any changed instructions through an established contact.

Do Incoterms or a letter of credit guarantee quality?

No. Incoterms allocate delivery tasks, costs and risk, rather than setting payment milestones. A letter of credit pays against compliant documents; agree suitable inspection documents with your bank before opening it.

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Tell us the product, quantity and destination. Our own staff in China verify factories, follow production and inspect before shipment. We reply the same working day to confirm receipt and arrange next steps.

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