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 2026-03-19 · 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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