Sourcing Guides

How to Negotiate Payment Terms with a New Manufacturer

Payment terms are more negotiable than many first-time buyers assume — here's what typically moves and what doesn't.

Published March 19, 2026 · Sourcing Guides

What’s Usually Fixed Early On

With a brand-new relationship and no order history, most manufacturers hold firm on deposit percentage (commonly 30%) since it protects against buyer cancellation risk on a custom order.

What Becomes Negotiable Over Time

After several completed order cycles with reliable payment history, deposit percentage, payment window and even limited credit terms often become negotiable — a natural evolution worth raising directly rather than assuming terms are fixed indefinitely.

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