Payment terms are where sourcing deals go wrong. Not because of fraud (usually) — but because buyers and factories have opposite incentives, and poorly structured terms leave one side holding all the risk.
This guide explains every payment method you'll encounter sourcing electronics from China, and how to structure terms so you're not the one taking all the risk. For a broader view of the full sourcing process, including how to find and qualify suppliers before payment ever comes up, see our sourcing guide.
The core tension
Factories want money before they spend on materials and labor. Buyers want goods before they pay in full. Neither is wrong — both have legitimate business reasons.
The result is a negotiation. Understanding the tools gives you leverage.
