Importing Toys from China: Payment Terms and Trade Assurance Explained

The short answer: for a first order from a Chinese toy or playground equipment supplier, pay 30% deposit by T/T and the remaining 70% against the bill of lading copy, after a pre-shipment inspection has passed. If the order is small, run it through Trade Assurance instead. Never pay 100% in advance, and never wire money to an account whose holder does not match the company name on your proforma invoice. The rest of this guide explains the terms buyers actually use, what each one costs, and the payment schedule to write into your contract.

1. The terms that work for toys and play equipment

Bank transfer, called T/T (telegraphic transfer), is the default for almost every toy and playground equipment order. The 30/70 split protects both sides: the deposit covers raw material and mould time, and the balance is released only once the goods exist and have been checked. On repeat orders, buyers often move to 40/60 or open account terms.

Payment method	Typical cost	Risk to the buyer	Best for
T/T 30% deposit + 70% against B/L copy	Bank charges, roughly US$25–50 per transfer	Low, if the cargo is inspected first	Most first orders
T/T 100% after passed inspection, before shipment	Same as above	Low	Repeat orders with a known factory
Letter of credit at sight	0.1–0.5% of order value, minimum US$150–300	Very low, the bank controls release	Orders above roughly US$100,000
Trade Assurance (platform escrow)	No separate fee on most platforms	Low, the platform mediates disputes	Small and mid-size orders, new suppliers
PayPal, credit card, transfer services	1–4% of the amount sent	Medium, little leverage on quality	Samples and tooling deposits
Open account or documents against payment	Lowest	High for the factory, comfortable for you	Established relationships only

2. What Trade Assurance actually covers

Trade Assurance is escrow plus mediation, not insurance. You order on the platform, pay into the platform, and the money is passed on to the supplier according to the agreed milestones. If the goods are never shipped, arrive late beyond the contracted date, or fail to match the approved sample and specification, you can open a claim and the platform withholds the payment while it reviews the evidence. The evidence matters more than the argument: keep the agreed specification sheet, the approved sample photos, the inspection report and the shipping documents. That protection applies only to orders placed and paid through the platform, so paying a personal or unrelated company account means giving it up.

3. The payment schedule to write into your contract

Payment terms and production milestones should be one clause, not two. Every payment should buy you a document or a verification step, so that at no point are you fully paid with nothing in hand.

Stage	Payment released	What you should hold
Order confirmed	30% deposit	Signed proforma invoice, agreed specification sheet, confirmed delivery date
Pre-production sample	No payment	Approved sample photos, or the physical sample
Mass production	No payment	Weekly production photos or a live video call
Pre-shipment inspection	No payment	Passed third-party inspection report
Shipment booked	70% balance against B/L copy	Bill of lading copy, packing list, test reports

4. Red flags in a payment request

Late changes are where money is lost. Treat a sudden email with new bank details as fraud until it is confirmed by a second channel and backed by a bank certificate. Be careful with 100% advance on a first order, pressure to pay before a sample is approved, an account holder that differs from the contracting company, and any refusal to allow inspection before the balance is paid. With a genuine factory these questions are not a problem; the answers are simply documents.

5. Currency, bank charges and paperwork

Quote in one currency and keep it. Most Chinese factories invoice in US dollars; the buyer usually pays its own bank charges and the supplier pays its own, which should be stated on the invoice. Keep the SWIFT confirmation for every transfer, make sure the invoice number matches the proforma invoice, and file the test reports with the shipping documents for customs clearance.

A buyer who understands payment terms rarely has to argue about them. Start with a 30/70 split, inspect before the balance, keep the deposit on the platform if the order is small, and pay only against documents. For the surrounding checks, read our guides on MOQ and QC for first-time buyers and how to verify a China toy factory, or browse the slide range and swing range. You can also read our story or contact us with your market, model and target quantity.