You wire a large payment to your factory, but it arrives late and short on funds. Now your production is delayed, and you're stuck in a confusing argument about bank fees.

The best Chinese factories offer clear payment options: wire transfers (T/T) are standard for bulk orders, while platforms like Wise or PayPal are used for samples. Secure options like Letters of Credit (L/C)¹ should also be available.

I’ll never forget a promising brand I worked with years ago. They were ready for their first major production run, a huge step for their business.

They sent the 30% deposit via wire transfer, but they chose a budget option through their bank. The money got routed through two intermediary banks, each taking a small fee, and the transfer was delayed by a week.

By the time the funds arrived in our account, they were short by $150 and an entire week behind schedule. It wasn't about the money; it was about the delay and the friction it caused. It put a strain on our new relationship before we even cut the first yard of fabric.

For a professional designer like my client Dean, who operates on a tight schedule, these "small" issues are anything but. predictability isn't a luxury; it's the foundation of the business.

Do they accept global platforms like Payoneer or PayPal?

You need to pay for a $300 sample, but your only option is a slow international wire transfer with a $40 fee. Paying for samples has become a frustrating and expensive chore.

Yes, for small payments like samples, we readily accept modern platforms like PayPal or Wise. For bulk orders, however, we use wire transfers (T/T)² to avoid the high percentage-based fees.

Using the right tool for the job is essential. Paying a $40 wire fee for a $300 sample makes no sense for you. We understand that.

That's why we maintain accounts on platforms like PayPal and Wise. They are fast, easy, and cost-effective for smaller amounts. However, these platforms are not built for large-scale B2B transactions.

If we used PayPal for a $50,000 bulk order, their fee of around 3-5% would cost you an extra $1,500 to $2,500. A traditional wire transfer (Telegraphic Transfer or T/T) has a much lower, flat fee, usually under $50, regardless of the total amount.

A good factory partner offers flexibility: easy and modern for small transactions, secure and cost-effective for the big ones. We make sure the payment method always serves the order, not the other way around.

Payment Method	Best For	Typical Fee Structure
PayPal3 / Wise	Samples, small fees (<$1,000)	Percentage-based (e.g., 2-5%)
Wire Transfer (T/T)	Bulk Orders (>$1,000)	Flat fee (e.g., $20-$50)
Letter of Credit (L/C)	Very large, secure orders (>$50,000)	Complex fees from both banks

How do they handle multi-currency settlements⁴?

You sent your payment in Euros, just as you planned. But when it arrived at the factory, a fluctuating exchange rate meant they received less than the invoiced amount, creating a shortfall.

We quote and invoice in US Dollars (USD) to provide a stable price. While you can send payment in another currency, your bank must handle the conversion to ensure we receive the full, agreed-upon USD amount.

The global textile trade runs on USD. By quoting all our prices in dollars, we remove one major variable from the equation: currency fluctuation. This protects both of us. It means the price we agree on in your Proforma Invoice (PI) is the final price.

If your business operates in Euros, Pounds, or another currency, you can absolutely pay from that account. However, the responsibility for the conversion rests with you and your bank. You must instruct your bank to send a specific USD amount that matches our invoice.

Otherwise, if the exchange rate shifts between when you send the money and when we receive it, the final amount may be incorrect. This can lead to small but annoying balances due that delay shipment.

For a long-term partnership, we can sometimes discuss locking in rates, but the simplest method is to agree on a fixed USD amount from the start.

Can I set up escrow or L/C accounts easily?

You're about to send a $50,000 deposit to a factory for the first time. The risk feels immense, and you're losing sleep worrying about what happens if something goes wrong.

Yes. For large-volume orders, we welcome payment via a Letter of Credit (L/C). For added security on smaller orders, we also support platforms with built-in escrow, like Alibaba Trade Assurance⁵.

Trust is built over time, but security should be available from day one. For large, high-value orders (typically over $50,000), a Letter of Credit (L/C) is the gold standard for security. It's a formal guarantee from your bank to ours.

Your bank promises to pay us once we provide documents proving your jeans have been produced correctly and shipped on time. It protects you from non-delivery and protects us from non-payment. While L/Cs are very secure, they can be slow and involve significant bank fees.

For many e-commerce brands and smaller orders, a more modern and accessible option is an escrow service like Alibaba Trade Assurance. With this method, you pay the platform, which holds your money until you confirm that you have received your goods as described.

We are very comfortable working with both systems and will help you choose the one that provides the right balance of security and cost-efficiency for your order.

What fees apply per transaction?

Your payment arrived, but it was short by $50. The factory is asking you to send the rest, and you're stuck dealing with a small but frustrating problem that's holding up your shipment.

You are responsible for your bank's sending fees and any intermediary bank fees. To avoid shortfalls, always instruct your bank that you will cover all charges using the "OUR" payment instruction.

The "mystery of the missing fee" is one of the most common frustrations in international trade. It happens because a simple wire transfer can pass through multiple banks on its way to us, and each one might take a small fee if not instructed otherwise.

This is easily solved. When you fill out your bank's wire transfer form, you will see a section for fees or charges. Here, you have three options. You must choose "OUR."

Instruction	What It Means	Outcome
BEN (Beneficiary)	The factory (beneficiary) pays all fees.	We receive less than you sent. This is incorrect.
SHA (Shared)	You pay your bank's fee; we pay our bank's fee.	An intermediary bank can still take a fee from the middle, causing a shortfall.
OUR	You (the sender) pay all fees, including any intermediary fees.	This is the correct way. We receive the full invoice amount.

By selecting "OUR," you ensure that the amount on your invoice is the exact amount that lands in our account. It creates total clarity, eliminates any annoying last-minute payment requests, and keeps your production moving smoothly.

Conclusion

Clear payment terms are not about money; they are about trust and predictability. A great factory partner makes paying simple, secure, and transparent so you can focus on your designs.

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