How Export Suppliers Should Handle 30% Deposit and Net 30/60/90 Payment Terms

Start With the Main Question: Do Not Reject Immediately, Turn the Request Into Negotiable Conditions

When a buyer says “30% deposit, 70% Net 30/60/90 after shipment,” the first response should not be a simple “we cannot accept.” In export sales, payment terms are negotiated together with price, delivery time, MOQ, packaging, certification, warranty, and repeat-order potential. A stronger response is to acknowledge the buyer’s purchasing process, then bring the discussion back to the first order, payment record, document release, order value, and credit protection.

The 30% deposit is the buyer’s commitment to start the order. The 70% balance on credit is the credit you are giving to the buyer. This is not only a payment term discussion. It is a question of whether most of the invoice value can still be collected after the goods have already been shipped.

Before accepting or rejecting the request, translate it into four export-sales questions: Is this a first order or repeat order? Is the product standard or customized? Will the balance be paid before shipment, against copy B/L, or after the buyer receives the goods? Can the buyer support the credit request with trade references, company information, L/C, credit insurance, or another arrangement?

A useful first reply is:

We understand your standard payment practice. Since this is our first order, let's find a payment term that works for your purchasing process and also keeps the first shipment smooth for both sides.

Step One: Clarify What the Buyer Actually Means by Net Terms

Many payment disputes are not caused by bad intent at the beginning. They happen because both sides understand the payment term differently. When a buyer says Net 60, confirm whether the 60 days start from invoice date, shipment date, B/L date, arrival date, customs clearance date, or goods received date.

For the seller, after invoice date, after shipment date, and after B/L date are usually clearer. After arrival, after customs clearance, and after goods received can extend the timeline and create more room for internal delays on the buyer’s side.

Also confirm when the 30% deposit will be paid. If the buyer means “30% before shipment,” that is not a real production deposit. The factory may already have purchased materials, arranged production, made packaging, or completed inspection before that payment arrives. A more standard export wording is:

30% deposit upon order confirmation, 70% balance before shipment.

Or:

30% deposit upon order confirmation, 70% balance against copy of B/L before releasing original documents.

The sales team can ask these questions before revising the PI:

1. Do you mean 30% deposit upon order confirmation or before shipment? 2. For the 70% balance, is Net 30/60/90 counted from invoice date, shipment date, or B/L date? 3. Will the payment term apply to the first trial order or only after regular cooperation? 4. Can you accept 70% against copy of B/L for the first shipment? 5. If Net terms are required, can you provide trade references or support L/C / credit insurance approval?

This makes the buyer’s request specific enough for internal review.

Step Two: Do Not Look Only at the 30% Deposit

The common mistake is thinking that a buyer who pays a 30% deposit must be relatively safe. A deposit only shows that the buyer is willing to start the order. It does not prove that the 70% balance is safe.

Look at three points.

First, check whether the deposit covers production exposure. If the order value is USD 100,000 and the buyer pays USD 30,000, but materials, labor, packaging, inspection, and inland costs already exceed that amount, the supplier is still exposed if the buyer cancels or delays the order. This is especially important for OEM logos, customized colors, special sizes, custom packaging, molds, and non-standard goods.

Second, check whether the seller still controls the goods after shipment. For sea freight, if the seller controls the original B/L or does not arrange telex release before receiving the balance, there is still leverage. If the buyer asks for air freight, courier shipment, early telex release, or delivery before Net 60/90 payment, the risk changes significantly.

Third, check whether the credit period will accumulate. If the buyer orders USD 100,000 every month and 70% of each invoice is payable Net 60, the receivable can quickly become USD 140,000 or more. The buyer may be pushing the next shipment while the previous balance is still unpaid.

A simple risk formula is:

Real exposure = 70% balance + production cost already invested + loss of document control after release + working capital tied up by the next shipment

If that exposure is beyond the company’s acceptable bad-debt range, the term should not be accepted simply because the buyer says they are a large importer.

Step Three: Treat New Buyers, Repeat Buyers, and Large Buyers Differently

Not every credit term should be rejected, and not every buyer deserves the same credit term. Segment the buyer first.

New Buyers: Avoid Net 60/90 on the First Order

For the first cooperation, even if the buyer has a professional website and credible LinkedIn presence, it is usually not advisable to offer Net 60 or Net 90 immediately. The missing piece is payment history. You do not yet know whether the buyer pays on time, delays payment through quality claims, or negotiates again after the goods arrive.

A safer export approach is to treat the first order as a trial order. You may support the buyer with MOQ, lead time, documents, and communication, but keep the payment term safer:

30% deposit + 70% before shipment

Or:

30% deposit + 70% against copy of B/L

After one to three smooth shipments, both sides can review a limited Net 30 term.

Repeat Buyers: Give a Limit, Not an Open Credit Line

If the buyer has completed several orders, paid on time, and shown consistent demand, a limited credit term may be reasonable. Start with a small portion of the balance, not the full 70% balance on Net 60/90.

For example:

30% deposit, 40% before shipment, 30% Net 30 after B/L date.

The buyer gets some payment flexibility, while the supplier does not release the full balance into credit.

The team should also set an internal rule: if there is any overdue payment, new production, shipment, or document release pauses until the overdue amount is cleared. A credit term is a cooperation policy, not an unlimited financing facility for the buyer.

Large Buyers: Negotiate With Protection

Large importers, retail chains, and brand customers may say:

Our standard payment term is Net 60.

These customers can be worth pursuing, but size alone is not enough. Large buyers may have slower internal processes, stricter deductions, chargebacks, quality-claim procedures, and longer approval chains.

If the account is worth developing, connect the credit term with L/C, SBLC, credit insurance, credit limit, phased shipments, price adjustment, or trade references. The goal is not simply to grant credit. The goal is to make the credit amount documented, limited, and protected.

Step Four: Offer Options Instead of Saying No

Replying with only “we cannot accept” can end the conversation too early. A better sales response is to give options.

For example:

For the first order, we suggest the following options:

Option 1: 30% deposit after order confirmation, 70% balance before shipment.

Option 2: 30% deposit after order confirmation, 70% against copy of B/L before releasing original documents.

Option 3: 30% deposit, 40% before shipment, 30% Net 30 after B/L date.

This keeps the order moving. If the buyer insists on their internal payment policy, add:

After we complete the first few shipments smoothly and build a stable payment record, we are open to reviewing a limited Net 30 term for repeat orders.

The message is clear: credit is not impossible, but it needs a payment record first.

Step Five: Put the Payment Term Into the PI

Many sales conversations are detailed on WhatsApp or email, but the PI only says:

30% deposit, 70% Net 60.

That is not enough. Finance, documentation, freight forwarders, and the buyer’s purchasing team will rely on the PI and contract, not the chat history.

If part of the balance is on credit, the PI should define the payment schedule, starting point, credit limit, document release condition, and overdue handling. A practical wording is:

Payment term: 30% deposit by T/T upon order confirmation. 40% balance by T/T before shipment. 30% balance Net 30 after B/L date, subject to the agreed credit limit. Original documents / telex release will be arranged only after overdue payments, if any, are cleared.

This wording makes three things clear: the credit period starts from B/L date, the credit amount is limited, and document release can be paused if overdue payments exist.

Copyable Asset: Payment Term Review Checklist

Before accepting the buyer’s credit request, review these questions:

Is the buyer new or repeat? What is the order value? Is the product standard or customized? Can the 30% deposit cover production exposure? From which date does the 70% balance term start? Can the buyer accept payment against copy B/L? Is the buyer asking for telex release before payment? Does the buyer have a payment record with us? Can the buyer provide trade references? Is there L/C, credit insurance, SBLC, or another protection? What is our maximum acceptable credit limit? Will the next shipment pause if payment becomes overdue?

The point is not to add paperwork. It is to stop the team from granting credit based only on instinct.

Copyable Asset: Email and WhatsApp Replies

For a new buyer requesting Net 60 or Net 90:

Hi [Name],

Thank you for sharing your payment term request. We understand Net 60/90 may be part of your regular purchasing policy.

As this would be our first cooperation, we normally start with a standard payment term for the trial order: 30% deposit by T/T upon order confirmation, 70% balance by T/T before shipment.

After we complete the first few shipments smoothly and build a payment record together, we are open to reviewing a limited Net 30 term for repeat orders.

This will help both sides start safely and move the cooperation forward step by step.

Best regards, [Your Name]

For a buyer who insists on a credit term:

Hi [Name],

We can discuss a credit term, but for the 70% balance we would need a proper credit arrangement, such as L/C, credit insurance approval, SBLC, or an agreed credit limit based on your company information and trade references.

For the first order, we suggest: 30% deposit by T/T upon order confirmation, 40% balance by T/T before shipment, 30% balance Net 30 after B/L date.

If this works for your side, we can prepare the PI accordingly. Once the first orders are completed smoothly, we can review the credit limit and payment term for repeat orders.

Best regards, [Your Name]

For a quick WhatsApp reply:

Hi [Name], noted your requested term: 30% deposit and 70% Net 60 after shipment. Since this is our first order, could we start with 30% deposit and 70% before shipment, or 70% against copy of B/L? After the first shipments go smoothly, we can review a limited Net 30 term for repeat orders.

If the buyer says another supplier can offer the credit term:

I understand. Different suppliers may have different credit policies. For us, we want to make sure the first shipment is smooth for both sides. We can support you on price, documents, lead time, and after-sales communication, but for the first order we need to keep the payment term safer. Once we build a payment record, we can review better terms for repeat orders.

Where Xingzhi Huoketong Fits Into the Workflow

Xingzhi Huoketong does not take credit risk for exporters, and it cannot guarantee that a buyer will pay on time. Its value is helping export teams understand the buyer before negotiating commercial terms.

At the customer development stage, teams can use Xingzhi Huoketong to find importers, distributors, brands, and end customers in target markets, then enrich company websites, contacts, business type, product fit, and communication records. At the customer profiling stage, teams can record market role, product match, procurement scenario, payment preference, and follow-up history. At the sales management stage, teams can segment accounts into new buyers, stable buyers, cautious accounts, and high-risk accounts.

Payment terms are not only a finance issue. They are part of buyer quality assessment. The earlier the team structures customer background, contact identity, and follow-up history, the easier it is to decide which terms can be flexible and which terms should remain non-negotiable.

Final Rule for Export Sales Teams

When a buyer asks for a 30% deposit and 70% Net 30/60/90, do not be distracted by the deposit alone. The real questions are whether the 70% balance is protected, whether document control remains with the seller, whether the buyer’s credit is strong enough, and whether repeat shipments will turn the balance into a larger receivable.

Use trial orders for new buyers, limited credit for repeat buyers, and protected credit structures for large buyers. Be flexible where it helps the deal, but do not give unlimited credit. A reliable payment term is not the one that sounds friendly in chat. It is the one that can be written into the PI, controlled through document release, and collected according to clear milestones.