Payment terms are where most first-time China-direct toy buyers quietly lose money, or lose the order. This guide explains the three documents and mechanics that run almost every genuine B2B toy transaction: the Proforma Invoice (PI), the T/T wire (Telegraphic Transfer), and the deposit-and-balance split that protects both sides. No jargon, no fluff, just the terms you should see in writing before you pay a cent.
A Proforma Invoice (PI) is the supplier's binding quote document, issued before production or shipment. It is not a request for money, it is the agreement you both work from. A proper toy PI confirms, in writing:
Critically, a genuine supplier backs the PI with full invoices and batch traceability. If a supplier is vague about any of the above, or refuses to put it on a document, that is a red flag, not a negotiation style. We cover the full checklist in our supplier verification guide.
T/T (Telegraphic Transfer) is simply a bank wire, the standard way cross-border B2B toy orders are paid. There is no card network, no escrow middleman; the buyer's bank sends funds directly to the supplier's bank account via the SWIFT network. For a first order with a new supplier, the practical flow is:
You receive the PI with itemized pricing, FOB Guangzhou terms, and the deposit/balance split stated clearly.
You send the deposit by T/T. The supplier confirms receipt and allocates your stock, your PO is now locked in.
Before shipment (or against the shipping documents), you send the balance by T/T. Goods are released for loading.
One honest note for new buyers: because T/T is a direct bank transfer, it places trust on the written agreement. That is exactly why the PI and the paperwork behind it matter more than the payment method itself, and why we always recommend starting with a small, verifiable test order before scaling.
The deposit-and-balance split exists for a reason: it binds both parties. The buyer commits real money so the supplier allocates stock and starts the production or packing cycle; the supplier only receives the balance once the goods are ready, so the buyer is not paying for nothing. Here is the breakdown:
| Element | What it does | What a genuine supplier does |
|---|---|---|
| Deposit | Secures the order and allocates stock from available inventory | States the exact percentage and what it covers on the PI, in writing |
| Balance | Settled before shipment or against shipping documents | Confirms the trigger (goods ready / B/L copy) clearly before you pay |
| Written terms | Removes ambiguity about who owes what, when | Puts deposit % and balance timing on every PI, never leaves them verbal |
The exact deposit percentage and balance timing vary by supplier and order size, NewbeeToy states the precise structure on each PI. Treat a supplier who refuses to write the terms down as a stop sign. See the verification red flags →
Our honest advice to every first-time buyer is the same model we run ourselves, verify before you commit volume:
Ask for a quote on a small, mixed first order across the brands you want to test. A genuine supplier replies with a clean, itemized PI.
Wire the deposit by T/T and confirm your stock is allocated. You now have a real, traceable order, not a promise.
Check authenticity, packaging and paperwork: full invoices, batch numbers, and CPSIA / CPSC eFiling / CPC documentation. This is the moment the whole structure proves itself.
Once the first order checks out, your reorders get faster and larger. The deposit on a reorder is just routine, the risk was retired on the test.
NewbeeToy's channel supports opening from a single case pack across 1,025+ genuine SKUs in four brand systems, small enough to be a lesson, big enough to be real sell-through data. See how ordering works →
Send an RFQ, you'll get an itemized Proforma Invoice with FOB Guangzhou pricing, written payment terms and freight options within 24–48 hours.