What are common payment terms with brass jewelry factories?

A deposit is commonly requested before material purchasing and production scheduling, but the percentage is not universal. Smaller or first-time orders may require stronger upfront funding because the supplier carries greater risk, while established buyers may negotiate staged payments. Ask the factory to identify which portion covers materials, labor, and non-recoverable development work. The pro forma invoice should state the deposit amount, payment trigger, currency, and whether bank fees are included.

The balance is often due after production is complete and before goods are released to the carrier. A safer structure links payment to an agreed inspection milestone rather than an informal promise that the order is finished. Define who conducts inspection, what documents are supplied, and how minor defects are handled. For larger purchases, buyers can discuss a third-party inspection or split balance tied to approval and dispatch documentation.

They can request changes, but negotiation is strongest when supported by a realistic forecast, clear specifications, and a low-risk first order. A new buyer may propose staged payments around sample approval, production completion, and inspection instead of demanding open-account credit. The supplier may price financing risk into the quotation or retain stricter terms until several orders establish payment history. Any concession should be written into the sales contract, not left in chat messages.

The commercial documents should specify whether charges are shared, paid by the sender, or deducted from the recipient amount. An overseas transfer can involve the remitting bank, intermediary banks, and receiving bank, so the beneficiary may receive less than the invoice value if instructions are unclear. State that the supplier must receive the agreed net amount, identify the payment method, and retain transfer evidence. Confirm tax, customs, and currency responsibilities separately from bank fees.

Tooling should appear as a separate line item with its own approval point, price, revision allowance, and ownership terms. The schedule should explain whether the mold charge is refundable, credited against a production quantity, or retained if the project stops. It should also state who may use the tool, where it is stored, and what happens if a design is revised. Treating tooling as hidden unit cost makes later price comparisons and ownership disputes more difficult.

Protection comes from a precise specification and a documented acceptance procedure, not from the payment term alone. Attach approved drawings, finish references, plating expectations, packaging requirements, acceptable defect limits, and inspection timing to the purchase order. Define remedies such as repair, replacement, credit, or rework and set a notification period for concealed defects. Retaining a small balance can be discussed for suitable projects, but it should be commercially agreed rather than assumed.