Why surplus trading has its own payment rhythm
Production orders are governed by a contract with milestone payments; stock lots are sitting in a warehouse costing the seller money every week, so they move fast, on short-validity quotes, with less paperwork between “yes” and “wire.” That speed is where buyers both win (discounts) and lose (leverage).
The standard structure, stage by stage
| Stage | What happens | Money at risk |
|---|---|---|
| 1. Quote & lot lock | Seller confirms price (per unit and take-all), quantity, packing data and validity window | Zero — nothing paid yet |
| 2. Deposit | Deposit paid, lot locked to you and removed from availability; QC file and certificate pack delivered | The deposit — protected by the evidence file you received before paying |
| 3. Shipment | Container loaded, customs declared, vessel departs | Deposit; loading supervised under the shipment file |
| 4. Balance against B/L | Seller provides bill of lading copy; you pay balance; original documents released | Balance — paid only after goods are on the water |
| 5. Settlement | Final commercial invoice reconciled; funds settled in USD or CNY | None — goods documented and en route |
What “balance against B/L” means
Balance against B/L means the remaining payment falls due when the seller provides a copy of the bill of lading — the carrier-issued document proving the goods are loaded on the vessel. It is the industry's built-in handshake: the seller cannot collect the balance without shipping, and you cannot receive the goods without settling.
Why “100% prepayment” is the one rule you never break
Every surplus-trade horror story starts the same way: a discount too good to refuse, available only for full prepayment “because another buyer is interested.” Once you have paid in full, you have no leverage at inspection, at loading, or at documentation. If anything is wrong — short count, wrong grade, mismatched certificates — your only remedy is a lawsuit in a foreign jurisdiction against a counterparty you have never met. The deposit-plus-B/L structure exists precisely so that most of your money moves only after the goods do.
Bank instruments: when they help, when they don't
| Method | Typical cost | Best for | Watch out |
|---|---|---|---|
| T/T deposit + balance vs B/L copy | Bank wire fees only | The stock-lot norm, any size | Only with verified counterparties |
| Letter of credit (LC) | 0.5–2% + set-up time | Lots above ~$100k, new counterparties | Slow; document mismatches cause refusals |
| Escrow via platform | Platform-dependent | Cross-border first deals | Confirm what triggers release |
| 100% prepayment | Your entire order | Nothing, ever | Walk away |
Clearinghouse protections: why counterparty structure matters
A clearinghouse sits between factory and buyer and holds both the goods and the settlement, which changes the risk math entirely:
- Vetted onboarding on both sides. Buyers are pre-approved before they can make offers; factories are verified before their lots list. You are never wiring funds to an anonymous seller.
- Documented goods before deposit. The QC evidence file and certificate pack arrive before money moves.
- Structured settlement. Deposit on order confirmation, balance against the bill of lading, with the platform reconciling the commercial invoice, packing list and customs documents under one shipment file.
- Fast settlement for the factory side. Sellers get paid quickly after lot lock, which is why they accept the platform's price discipline — and why the discounts get passed to you rather than lost to a middleman chain.
Currency, validity and other fine print
- Settlement currency. International wire settlements for Foshan exports are in USD or CNY. Any other currency shown in a quote is an indicative conversion only — the commercial invoice is what counts.
- Quote validity. Expect 7 days. Surplus pricing reflects warehouse pressure, not a catalogue. Re-confirm anything older before wiring a deposit.
- Take-all vs MOQ pricing. Take-all (whole-lot) pricing is meaningfully lower per unit. If you can absorb the volume, the per-unit saving usually outweighs the extra freight per piece — run it through the container estimator before deciding.
- Partial shipments. Confirm whether the lot can ship split (two containers, two ports). Most single-lot deals allow it; mixed-lot plans should specify it in the loading list.
Frequently Asked Questions
Is a 30% deposit negotiable on stock lots?+
Structure is more negotiable than percentage. Some sellers accept a lower deposit with the balance due earlier (at loading rather than against the bill of lading); the direction you want is the opposite — later payment, after more proof of shipment. Pay for certainty, not for a smaller number up front.
Who arranges freight under FOB?+
Under FOB Foshan or FOB Nansha, the seller delivers goods on board the vessel; you or your forwarder control the main carriage and insurance. Confirm your forwarder's loading supervision and the container stuffing plan in advance — under FOB, loading visibility is yours to request.
What if the goods fail inspection after my deposit?+
This is why sequence matters: with a clearinghouse, the QC evidence file is delivered before the deposit, so failure scenarios surface while your money is still in your account. If a re-inspection after deposit reveals a material discrepancy, the lot lock should unwind per the platform's terms — read them before wiring, not after.
Do I pay the platform or the factory?+
Through the clearinghouse model, you settle with the platform, which collects the deposit, pays the factory on lot confirmation, and reconciles the balance against the bill of lading. You get one counterparty, one shipment file, and no exposure to a factory you have never verified.
Official References
Rules and product scopes change. Confirm the current HS-code treatment with the destination importer, authority, certification body and customs broker before shipment.
Check a live lot before you import
Request vetted buyer access for current specifications, inspection evidence, packing data and private FOB offers.