![\"Factory](\"https:\/\/tiiocti.com\/wp-content\/uploads\/2026\/01\/tiiocti-factory-34-scaled.jpg\")
<\/p>\nEvery custom bag order comes down to a payment structure: how much money moves when, and what triggers each payment. The two most common structures \u2014 30\/70 and 50\/50 \u2014 aren’t just different percentages. They create different risk profiles, different leverage points, and different outcomes when something goes wrong during production.<\/p>\n
If you’re ordering custom bags from a Chinese factory for the first time, understanding deposit structures isn’t optional \u2014 it’s the difference between having leverage and having none.<\/p>\n
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Under a 30\/70 structure, you pay 30% of the order value as a deposit when the purchase order is confirmed. The remaining 70% is due before shipment \u2014 typically against a copy of the bill of lading, which proves the goods have been loaded onto the vessel.<\/p>\n
This structure exists because it balances risk between both parties:<\/p>\n
As ChineseCheck’s guide to T\/T payment terms<\/a> explains, the 30\/70 structure is the default for most manufacturing categories in China \u2014 not just bags. It’s the baseline that experienced suppliers and buyers both expect.<\/p>\n Under a 50\/50 structure, you pay half the order value upfront and half before shipment. The factory has more cash working capital. You have less money held back as leverage.<\/p>\n Factories sometimes request 50\/50 for specific reasons:<\/p>\n With only 50% held back, your leverage during the pre-shipment inspection phase is reduced. If the inspection reveals problems, the factory knows you’ve already committed half the payment. They may be less motivated to fix issues quickly \u2014 or at all \u2014 because they’ve already captured significant margin.<\/p>\n With 70% held back, the factory’s incentive to resolve quality issues is much stronger. They can’t ship (and can’t access the majority of their payment) until you approve the goods.<\/p>\n The deposit percentage is just one layer. Experienced buyers combine deposit structure with other contractual protections:<\/p>\n Write into the contract that the 70% (or 50%) balance is only due after a third-party inspection passes. This converts your payment terms into a quality gate. Without this clause, the factory can demand payment as soon as goods are “ready” \u2014 even if you haven’t verified quality.<\/p>\n This is especially critical when ordering heavy-duty bags from a new supplier<\/a> where you haven’t yet established a quality track record.<\/p>\n For very large orders (over $100,000), consider a three-stage structure: 30% deposit, 30% at 50% production completion, 40% against B\/L copy. This gives the factory cash flow during production while keeping significant leverage for the final stage.<\/p>\n For orders over $200,000, a letter of credit from your bank guarantees payment to the factory \u2014 but only if they present compliant shipping documents. The bank acts as intermediary. This is the safest structure for buyers but costs $300-500 in bank fees and adds 5-7 days to the payment process.<\/p>\n Learn more about the full range of payment terms for China bag orders<\/a> including escrow and trade assurance options.<\/p>\nWhen 30\/70 Works Best<\/h3>\n
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50\/50 Structure: More Skin in the Game, Different Trade-offs<\/h2>\n
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The Hidden Risk of 50\/50 for Buyers<\/h3>\n
Comparison: 30\/70 vs 50\/50 Across Key Scenarios<\/h2>\n
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\n \nScenario<\/th>\n 30\/70<\/th>\n 50\/50<\/th>\n<\/tr>\n<\/thead>\n \n Quality problem found at inspection<\/td>\n Strong leverage \u2014 70% withheld<\/td>\n Moderate leverage \u2014 only 50% withheld<\/td>\n<\/tr>\n \n Factory delays production 2 weeks<\/td>\n You can hold balance payment as pressure<\/td>\n Less pressure \u2014 they already have more cash<\/td>\n<\/tr>\n \n Factory goes bankrupt mid-production<\/td>\n You lose 30% (deposit)<\/td>\n You lose 50% (deposit)<\/td>\n<\/tr>\n \n Smooth production, no issues<\/td>\n Standard process, no friction<\/td>\n Standard process, no friction<\/td>\n<\/tr>\n \n Factory’s willingness to negotiate price<\/td>\n May accept slightly higher price for better cash flow terms<\/td>\n May offer 1-2% discount for more upfront cash<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n ![\"Quality](\"https:\/\/tiiocti.com\/wp-content\/uploads\/2025\/07\/8M0A1247-scaled.jpg\")
<\/p>\nWhat Protects You Beyond the Deposit Structure<\/h2>\n
1. Pre-Shipment Inspection Clause<\/h3>\n
2. Production Milestone Payments<\/h3>\n
3. Letter of Credit (L\/C) for Maximum Protection<\/h3>\n