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What payment milestones are reasonable for a first OEM charger order?

Tie payments to events you can verify: deposit at order, balance after inspection and before shipment, and documents as a condition of release.

Updated 3 min read

What payment milestones are reasonable for a first OEM charger order?
The question

We are placing our first OEM order of 1,000 branded 65W chargers with a factory we haven’t worked with before. The factory proposes a deposit and the balance before shipment. How should we structure the payments to protect both sides?

Main answer · Wecent Editorial Team

Short answer: A deposit at order confirmation and the balance before shipment is a common structure for first orders. Make the balance conditional on things you can check: an inspection report that passes, the agreed documents for your brand, and photos or video of the packed goods. The exact percentages are commercial and should be agreed in writing. Confirm the terms with Wecent.

Why deposit plus balance is common

For a custom order, the factory buys materials and prints your packaging before production starts. A deposit covers that commitment. The balance before shipment protects the factory against being left with branded goods nobody else can buy. For a first order, neither side has history, so the structure has to give both some security.

Making the balance depend on evidence

  • Pre-shipment inspection: by your own team or a third-party inspector, against the golden sample and an agreed AQL. Payment follows a passed report.
  • Documents: DoC draft, test report copies covering your model name, label artwork approval. These are much easier to get before the balance is paid.
  • Packing evidence: carton marks, quantities and photos of sealed cartons.

Write the milestones down

  1. Order confirmation with the exact specification, sample reference and price.
  2. Deposit payment and the date production starts.
  3. Production complete, inspection booked.
  4. Inspection passed, documents received, balance paid.
  5. Shipment under the agreed Incoterm.

Add what happens if inspection fails: rework at the factory’s cost, a re-inspection, and who pays for it.

Payment method and timing

Bank transfer is usual; letters of credit add protection but also cost and paperwork, and suit larger orders. Allow for bank processing days in your timeline. A balance sent the day before a booked vessel is a common reason for missed sailings.

Samples and tooling

Sample and set-up charges are usually paid separately and earlier. Agree whether they are credited against the order.

After the first order

Terms often relax as trust grows, for example a smaller deposit or payment after arrival for repeat orders. Ask what the factory offers for repeat business, but don’t expect those terms on order one.

Wecent’s published payment terms are on its payment terms page. Confirm the exact terms for your order with Wecent; this article doesn’t state them on Wecent’s behalf.

Where this answer says confirm with Wecent, the detail is not published on the product page and has to come from the datasheet or the factory. General facts come from the standards bodies, regulators or device makers named in the text.

Three more perspectives

Wecent Editorial Team · Purchasing perspective

Agree the exchange rate and currency in the order confirmation. If the factory quotes in USD and your budget is in EUR, a currency swing between deposit and balance can cost more than the negotiation over percentages.

Wecent Editorial Team · Compliance/QC perspective

Book the inspection as soon as production dates are confirmed. Inspectors get busy before holidays like Chinese New Year and the Q4 season. A late inspection delays the balance, which delays shipment.

Wecent Editorial Team · After-sales perspective

Agree before the balance how warranty replacements will be handled, for example free spare units in the shipment or credit on the next order. Once payment is complete, that conversation is harder.

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