Payment Terms for Slipper Importers: TT, LC, and What Actually Works

You've negotiated the price. You've confirmed the MOQ. You've approved the sample. Now someone has to send money to a factory in a country they've never visited. If you've never done this before, it's the most uncomfortable part of the entire order — wiring thousands of dollars and hoping a container shows up. Here's how payment actually works in the slipper trade, what terms are standard, and what to expect.

The Standard: 30/70 by TT

The most common payment structure in the slipper industry is 30% deposit by telegraphic transfer (TT) to start production, with the 70% balance paid before shipment. Not after shipment. Before. The factory produces your order, notifies you it's ready, and you pay the balance. Only then does the container leave the factory.

This is standard because it balances risk for both sides. The factory has your deposit — enough to cover raw material costs if you cancel. You hold the majority of the payment until the order is complete — leverage to ensure the order is produced. When both parties honor the arrangement, it works. When one side doesn't, the structure protects the other.

A factory asking for 50% deposit or more upfront — before production begins — is either protecting itself against a history of buyer defaults, or operating on thin margins and needs your deposit to purchase raw material. Neither is automatically a red flag, but both are worth understanding. Ask why the deposit is higher than standard. The answer tells you something about their business.

TT vs LC: The Difference That Matters

Most slipper transactions run on TT. It's faster, cheaper, and simpler. LC is used when the buyer needs additional assurance — typically for first-time orders with a new supplier, very large orders, or when the buyer's bank or country regulations require it.

If you want to use LC, tell the factory before you start negotiating. Some factories accept LC from established buyers but not from new ones — the paperwork overhead is the same whether the order is $5,000 or $50,000, and the smaller LC may not justify the processing time. A factory that says "we don't accept LC" isn't necessarily suspicious. They may simply find it uneconomical for their typical order size.

When the Balance Gets Paid: Before Shipment vs After

Standard: 70% balance before shipment. The factory sends photos of your completed order — packed cartons, QC inspection, pre-shipment check. You verify the photos match your order. You send the balance. They load the container.

Some factories offer net terms — balance due 15 to 30 days after shipment — to established buyers with a history of timely payment. This is not standard for first orders. If a factory offers net terms on your first order without being asked, the offer is generous. It's also worth understanding why — they may be prioritizing cash flow over caution.

Don't expect to negotiate "balance after arrival." No factory with experience will ship a container internationally with only a 30% deposit and wait weeks for the other 70% to arrive — unless you've been buying from them for years and have never paid late.

What to Confirm Before You Wire

Five confirmations. They take five minutes before you wire. They prevent days of confusion after.

Written by Guangdong Chongdi Slippers Factory, Wuchuan, China. We process payments from importers every day. The process is simple when both sides understand it.