2026-10-21 · Moni Happy
Should I Pay a Diaper Supplier by T/T 30/70 or Letter of Credit?
Most new baby diaper distributors pay by T/T 30% deposit against the order and 70% against a copy of the bill of lading; a letter of credit (L/C) at sight is usually reserved for orders above roughly US$50,000–100,000 or a first high-value container, and it adds about 0.1–0.5% in bank fees.
- Standard first-order terms: T/T 30% deposit on proforma invoice, 70% against bill-of-lading copy.
- L/C at sight bank cost: roughly 0.1–0.5% of order value; T/T is faster and cheaper.
- L/C usually for orders above about US$50,000–100,000 or high-value first containers.
- Always order a paid sample box and a detailed proforma invoice before the balance.
- Discuss payment terms for your order at the partner program.
What do most suppliers ask for on the first order?
For a baby diaper distributor, the first order should expect T/T: 30% deposit to confirm the production slot, and the remaining 70% against a scanned copy of the bill of lading once the goods are loaded. This protects the supplier against a cancelled order and protects you against paying in full before production. Confirm the exact balance trigger in the proforma invoice, not on a chat.
When does a letter of credit make sense?
An L/C at sight is a bank guarantee. A baby diaper distributor should use it when the order is large: it is worth its fee when the order is large, say above US$50,000–100,000, or when you are placing a first high-value container with a factory you have not met. For most starter containers, T/T is simpler and cheaper. The ICC rules that govern documentary credits are referenced through ICC trade rules.
What documents protect me after I pay?
Keep the proforma invoice, the packing list, the bill of lading, and the certificate or test reports for the shipment. When you pay the 70% balance, ask for the bill-of-lading copy, the packing list and a photo of the loaded container. These papers are what clear customs and what you will need if any dispute arises. See the FOB versus CIF guide for who pays freight and risk.
How do I reduce payment risk on the first order?
A baby diaper distributor should never pay the full balance upfront. Start with a paid sample box, then a modest first container, and only grow the order once the first container sells and the paperwork is clean. Avoid suppliers that demand 100% in advance or refuse a sample; that is a standard red flag on the contract red-flag checklist.
Should I choose T/T or a letter of credit?
As a baby diaper distributor, choose T/T 30/70 for your first few containers: it is cheaper, faster and standard in the trade. Move to an L/C at sight once orders are large, repeat, and the fee is small relative to the value at risk. Negotiate the exact terms on your formal quotation rather than assuming a one-size contract. Discuss terms at the partner program.
Frequently asked questions
What payment terms do diaper suppliers usually ask for?
Typically T/T 30% deposit on the proforma invoice and 70% against a copy of the bill of lading before shipment.
When does a letter of credit make sense?
For large orders above roughly US$50,000-100,000 or a first high-value container, where bank documentation gives both sides more protection.
How much does an L/C cost?
Roughly 0.1-0.5% of the order value in bank fees, depending on the bank and country; T/T is cheaper and faster.
Bottom line: Pay T/T 30/70 for your first containers, keep every shipping document, and reserve the letter of credit for large repeat orders where the bank fee is worth the protection. Confirm terms on a formal proforma invoice.
Sources and further reading
Commercial figures are indicative planning ranges and subject to a formal quotation; statutory rates must be confirmed with a licensed customs broker.
Frequently Asked Questions
What payment terms do diaper suppliers usually ask for?
Typically T/T 30% deposit against the proforma invoice and 70% against a copy of the bill of lading before shipment.
When does a letter of credit make sense?
For large orders above roughly US$50,000-100,000 or a first high-value container, where bank documentation gives both sides more protection.
How much does an L/C cost?
Roughly 0.1-0.5% of the order value in bank fees, depending on the bank and country; T/T is cheaper and faster.
How do I reduce risk on the first order?
Order a paid sample box first, use a clear proforma invoice, and pay the balance against bill-of-lading documents rather than in advance.
Distributor resources
If you are evaluating suppliers for your market, these are the pages that answer the commercial questions — in the order buyers usually need them.
