How do I negotiate Net-30 terms with a Chinese factory?

Net-30 (paying 30 days after goods arrive) is almost impossible to get on your first order. Factories usually grant Net terms only after you have established 1-2 years of consistent, high-volume orders, or if your company is a massive multinational corporation backed by Sinosure (China Export & Credit Insurance Corporation).

💳 Payment & Finance

Import Credit Line Calculator

Use our import credit line calculator to calculate the credit line size needed to support your China import volume. Factor in payment terms, shipment frequency, and supplier requirements.

Updated: 2026-04-13

Planning Reference

Rates Last Reviewed April 2026

Reference Basis

Based on typical bank transfer fees, published LC fee schedules, and benchmark FX spread data.

Planning Note

Bank fees and FX rates change daily. Confirm actual charges with your bank or payment provider before transacting.

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Outgoing Bank / Processing Fee USD

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Mid-Market USD/CNY Rate CNY per $1

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Unlock Factory Financing (O/A terms)

Securing "Open Account" (O/A) or Net-30 / Net-60 payment terms radically improves your ROI, as the factory effectively becomes your bank, allowing you to sell the goods to your customers before you pay for the manufacturing. Achieving this requires impeccable credit and a deep partnership track record with the factory boss.

Tips for China Importers

Never pay 100% upfront to a new supplier. The global standard for China B2B is 30% deposit, 70% before shipment (or against Bill of Lading copy). Full upfront payment removes all your negotiating leverage.
Use Alibaba Trade Assurance for first orders. It adds supplier accountability and dispute resolution at no extra cost to you. Only remove it once you have 3–5 successful orders with a supplier.
Factor FX risk into your cost model. CNY/USD rates can move 3–8% in a year. A 5% FX move on a $50,000 order is $2,500. Consider forward contracts or timing purchases around FX movements.
Calculate the true APR of your supplier payment terms. A 2% discount for early payment (e.g., 2/10 net 30) equates to ~36% APR. If your credit line costs less, take the discount every time.
Match your payment timing to your cash flow cycle. If you pay your supplier before the goods arrive and you have 30-day customer terms, you may be financing 75+ days of inventory. Model your cash conversion cycle.