01
Define the commercial parties and order basis
The contract, invoice and beneficiary should identify who is selling and receiving funds. Resolve third-party payment routes before transfer and retain the documented explanation.
The order basis should include product codes, quantities, specifications, price, trade term, packing, lead time, approval steps and change control.
02
Connect each milestone to a deliverable
A milestone is more useful when it corresponds to evidence the buyer can review. The payment schedule should not imply that evidence guarantees performance, but it can prevent the entire commercial exposure from occurring before key decisions.
Custom orders may require drawing and sample approval between deposit and bulk production.
| Stage | Possible evidence | Decision question |
|---|---|---|
| Before deposit | Verified entity, contract, quotation and beneficiary | Is the intended order and recipient clear? |
| Before production release | Approved drawing, material or finish sample | Are key design decisions resolved? |
| During production | Agreed milestone evidence or inspection | Is progress consistent with the order? |
| Before final balance | Pre-shipment inspection and corrective status | Are open issues acceptable or resolved? |
| Before shipment release | Packing, cargo and freight instructions | Is the approved cargo ready to hand over? |
03
State what happens when the order changes
Changes to dimensions, materials, quantities or finish can affect price and schedule. Require a written variation showing the changed item, cost, timing and approval before the supplier proceeds.
Avoid allowing chat messages to silently replace the signed order or latest controlled drawing.
04
Separate inspection from automatic payment release
An inspection report records the stated scope and findings. The buyer must interpret the report against the contract, sampling limits, open defects and commercial position.
The contract should explain whether correction, reinspection, replacement, deduction or another remedy applies. Material legal questions require qualified counsel.
05
Prepare for delays, disputes and final handover
Record lead-time triggers, buyer-caused approval delays, supplier delays and force-majeure provisions under the agreed contract. Keep evidence of approvals, variations, payments, inspections and shipment instructions.
VELA can coordinate records and supplier communication within scope but does not provide legal, banking, insurance or destination customs advice.
Buyer questions
Frequently asked questions
Is 30% deposit and 70% balance always standard?
It is common in some transactions but not automatically appropriate or safe. Product risk, customization, supplier leverage and contract terms should determine the structure.
Should the final balance be paid before inspection?
Buyers should avoid removing practical leverage without understanding the contract. Link payment to the agreed inspection and correction process where commercially possible.
What if the supplier changes its bank account?
Pause and verify the change through trusted independent contact details. Require written explanation and review the relationship between the new beneficiary and contracting entity.
Can a sourcing agent hold supplier payments?
Some arrangements allow this, but the contracting, custody, fee and liability terms must be explicit. The buyer should understand who receives and controls funds.
Does inspection replace a contract?
No. Inspection provides evidence about the checked scope. The contract establishes specifications, payment conditions, remedies and responsibilities.