Payment Terms
Our goal is to Improve your cash flow with better payment terms
Minnesota Based Importer
Basic Payment Terms
Smaller Chinese Suppliers often have a lower price because they are more agile and have less overhead. However, because of their small size, they usually can’t accept credit terms. If you as a foreign Buyer don’t pay, there is little a smaller Suppliers can do from China. The risk is too high for them.
As a result, the standard terms from small and medium Chinese Suppliers may be 30% deposit to start production and 70% balance before production is released to the shipper.
There are minor exceptions to this. Some Suppliers will allow you to pay the 70% balance after they ship, but before the release the Bill of Lading (BOL). But for the most part, you are still paying before well before you receive the shipment. This can be hard on your cash flow as a Buyer.
Credit-on-Balance
The first place we start to improve terms is on the 70% balance payment. While the 30% deposit is still required to assure you have ‘skin in the game’, we negotiate giving you more time to pay the 70% balance. This could be anywhere from an extra 30-days to an extra 120-days. We do this in one of two ways.
Ask for it: Simply asking to get more time to pay the balance is all you need. We may have to remind them that you have a lot of Supplier choices. This fact often gets them to understand that they have to be flexible if they want your business.
Help them: The next option is that we simply buy the invoice from them at a small discount and then give you more time to pay us back the 70%. This is a popular option with Suppliers because you get credit terms, even though they don’t have to wait. There is no risk to them of non-payment. Us on the other hand being a US based company, we have easy access to common risk management techniques that they do not.
Full Credit Terms
The next option we have to improve your cash flow is to simply give you full Net-30 terms or better. No deposit required.
With this option, we simply pay the Chinese Suppliers ourselves according to their normal terms. Then give you an invoice once you receive the goods. This is likely more like the typical terms you get from other western Suppliers. We just get you the same terms from Chinese Suppliers. This can get you anywhere from Net-30 all the way to Net-120, depending on what you qualify for.
Just-In-Time Delivery
We are especially proud of our Just-In-Time (JIT) delivery service. This is for Buyers who especially value cash flow for their business model. Read more about it here.
What option do you qualify for?
What option you will qualify for will depend on you.
To make these options possible, we leverage multiple options. We might use our own funds, funds from a lender, credit insurance or credit from the Supplier. In all cases, the credit is decided based on your companies credit worthiness. Because of this, there will be an application process.
Contact us with your needs and we will see what we can do.
We are nothing if not flexible.














We Want To Grow With You!
Not only do we want to grow with you as your most valuable supply chain partner. But we want to actively help you grow by also helping your cash flow.