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30% Deposit, 70% Before Shipment: What It Means and How to Write It on a Quote

By Keptrow · · 5 min read

"T/T 30% deposit, 70% before shipment" is one of the most common payment lines on export quotes for physical products. Buyers know it. But many also know the guides that tell them it's risky. So how you write it, and what you offer around it, can decide whether a new buyer says yes.

This guide is for small factories, workshops and wholesalers quoting buyers in other countries. It explains what the term means, the common variations, how to work out the amounts, and how to answer when a buyer pushes back.

It isn't legal or banking advice. Agree the details with your buyer, and check them with your bank.

What it means

  • 30% deposit: the buyer pays 30% of the order value when they confirm the order. You use it to buy materials and book production.
  • 70% before shipment: the buyer pays the remaining 70% once the goods are finished, and before they leave your hands.
  • T/T (telegraphic transfer) is a bank transfer. It's the usual way both parts are paid.

The deposit protects you if the buyer walks away mid-production. Holding back the balance until the goods are ready gives the buyer some leverage. The split is a convention, not a rule. You can agree any split that works for both of you.

The common variations

Payment line When the balance is due What the buyer sees When it fits
30% deposit, 70% before shipment Goods finished, before they leave you They pay 100% before the goods ship Repeat buyers who trust you; small orders
30% deposit, 70% after inspection, before shipment After the buyer's inspection (theirs or a third party's) passes They see a report on the goods before paying New buyers, larger orders
30% deposit, 70% against B/L copy After the goods are loaded and you send a copy of the bill of lading Proof of shipment before the balance Sea freight; buyers who ask for it
50% deposit, 50% before shipment As above They pay more up front Custom or first-time production, trial orders
100% in advance With the order — Samples, very small orders

About "against B/L": the bill of lading is the carrier's document for the shipment. With an original B/L, who holds it usually controls who can collect the goods. Many sellers send the copy, receive the balance, then release the original or the telex release. Agree this order of steps with your buyer and your forwarder. The details depend on your shipment and documents.

Which one should you quote?

Quote the one you actually accept. Then show you're open to a safer version for the buyer:

  • Repeat buyer: 30/70 before shipment is normal, and they know you.
  • New buyer, first order: quote 30/70 and add one line: "Pre-shipment inspection welcome before the balance." It costs you little and answers the buyer's biggest worry before they raise it.
  • Very first order with custom work (new mold, printed packaging): a larger deposit is reasonable, because you can't resell the goods. Say why in one short line.

How to write the payment line

Vague lines cause most payment arguments. Write the method, the split, the trigger and the amounts:

Payment:  T/T. 30% deposit (USD 1,183.50) with order confirmation.
          70% balance (USD 2,761.50) before shipment, after the buyer's
          inspection if requested.
          Bank charges: each side pays its own bank's charges.
Lead time: 35 days after deposit received.

What each part does:

  • Amounts, not just percentages. The buyer's accounts team pays an amount. Round to the cent, and check that deposit plus balance equals the total.
  • The trigger. "Before shipment" alone leaves room to argue. "After the buyer's inspection if requested" or "against B/L copy" doesn't.
  • Lead time from the deposit. If the deposit comes late, your delivery date moves with it, and it's written down.
  • Bank charges. International transfers can lose fees in the middle. If you don't say who pays them, the balance often arrives a little short.

A worked example

A fictional order: 1,000 bamboo trays at USD 3.90, plus a USD 45.00 sample set. Total USD 3,945.00.

  • Deposit 30%: 3,945.00 × 0.30 = USD 1,183.50
  • Balance 70%: 3,945.00 − 1,183.50 = USD 2,761.50

Work out the balance as total minus deposit, not as 70% on its own. That way rounding can never leave you a cent short or over.

If the buyer adds an item after paying the deposit, issue a revised proforma invoice. Show the new total, the deposit already received, and the new balance.

When the buyer says "30/70 before shipment is too risky"

They've probably read that it means paying 100% before seeing the goods. Don't argue. Offer them evidence instead:

I understand. Many of our buyers book a pre-shipment inspection before paying the balance, and we're happy to arrange the timing with your inspector. We can also send photos and a short video of your finished goods and packing.

If they ask for "against B/L copy" and you can accept it, say so. If you can't, explain why in one line and offer the inspection instead. Keep the deposit unchanged. It's what keeps your production safe.

Two rules that protect both sides

  • Never change bank details by email mid-order. Payment scams often start with a fake "our account has changed" message. Put your bank details on the proforma invoice. Tell the buyer that you'll never change them by email alone, and that they should call you to confirm if they ever receive such a message.
  • Send a proforma invoice before each payment. It gives the buyer a document to pay against, with the right amount.

Build the quote with the terms already written out. The free Export Quote Template writes the payment line from your choices, for example "T/T: 30% deposit, balance before shipment", and calculates the deposit and balance from the total. It works in Google Sheets and LibreOffice, built for Excel with standard formulas only. For the rest of the quote, see our export quotation format guide.

FAQ

What does 30% deposit, 70% before shipment mean?

The buyer pays 30% of the order value to start production, and the remaining 70% once the goods are ready, before they ship.

What is the difference between 70% before shipment and 70% against B/L?

"Before shipment" is paid while the goods are still with you. "Against B/L" is paid after the goods are loaded and the buyer has a copy of the bill of lading as proof of shipment.

Is 30/70 normal for a first order?

It's common. Many sellers quote 30/70 and offer a pre-shipment inspection before the balance to new buyers, or ask for a larger deposit on fully custom work.

How do I calculate the balance?

Total minus deposit. For a USD 3,945.00 order with a 30% deposit, the deposit is USD 1,183.50 and the balance is USD 2,761.50.

When does lead time start on 30/70 terms?

Usually when the deposit is received. Write it on the quote: "35 days after deposit received."

Free tools from Keptrow

Questions? Email keptrow@proton.me.