Chinese solar suppliers accept a narrow set of payment terms. Deviating from norms costs 1-3% in supplier premium. Here's what actually gets accepted in 2026.
Industry standard
30% TT / 70% against BL
orders <$500k
Large-order standard
LC at sight
orders >$500k
Supplier premium for OA
1.5–2.5%
over TT price
Payment term matrix
| Term | Order size | Supplier acceptance | Buyer risk |
|---|---|---|---|
| 30/70 TT | $50k–$500k | Universal | Deposit at risk if no shipment |
| LC at sight | >$500k | Universal, tier-1 | Very low |
| DP (Documents against Payment) | Repeat buyers | Tier-1 only | Low |
| Open account 30 days | Long-term relationships | Rare, premium | Very low |
| Escrow (Alibaba) | <$100k, first order | Universal on Alibaba | Very low |
Frequently asked questions
QWill suppliers ever accept 100% on delivery?
No — the standard 30% deposit funds raw material procurement. A supplier who accepts 0% down is either fraudulent or desperately liquidity-constrained. Both are red flags.
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