30% Deposit, Balance Before Shipment: How Payment Works on a Tire Order

On a TIREO tire order, you pay in two bank wires. First, after you sign and return our proforma invoice (PI), you wire a 30% deposit, and that confirms the order. Then you wire the remaining 70% before the goods are shipped. The balance is due before the goods leave, not after they reach your port.

This guide walks through when each payment is due, what a T/T wire involves, and what to check before you send money. It explains our own process and is not legal, tax or financial advice.

What does "30% deposit, balance before shipment" mean?

It means the price on the PI is paid in two parts:

• Deposit: 30% of the PI total, paid after you sign the PI.
• Balance: the other 70%, paid before the goods are shipped.

Example (invented figures): your signed PI totals US$20,000. The deposit is US$6,000. The balance is US$14,000, due before shipment. Freight is not part of this example: our prices are ex-factory or at Qingdao port, and sea freight is confirmed separately for each shipment.

When is my order confirmed?

Your order is confirmed when two things have both happened: you have signed and returned our PI, and we have received the 30% deposit. One without the other does not confirm the order.

That is why the PI matters before you pay anything. Our proforma invoice checklist lists what to check on it, including sizes, patterns, quantities, prices and the payment terms.

Our quotations are valid for 15 days. If the quotation has expired before you are ready to sign, ask us to confirm the prices again before the PI is issued.

What is a T/T payment?

T/T (telegraphic transfer) is the trade term for an international bank wire. You instruct your bank to send money to the seller's bank account, using the bank details written on the PI.

The US International Trade Administration describes the wire transfer as "the most secure and preferred cash-in-advance option for exporters" and says exporters "should provide clear bank routing instructions to the importer". For you as the buyer, that means the bank details should come with the PI in writing.

For an international wire, Bank of America, as one example of a US bank, says you need "the recipient's name, address, bank information, such as SWIFT code, and account number". Some countries need extra identifiers. Your bank's form may differ, so ask it what it needs.

How long does a wire take?

Bank of America says funds sent abroad "typically arrive in 1-5 business days", and lists things that can delay a wire, including "currency selected, processing time of the receiving bank, local bank holidays, and delays by an intermediary bank". Your bank's timing may differ.

Plan for this gap twice: once for the deposit, which starts the order, and once for the balance, which has to arrive before the goods can be shipped.

What happens between the deposit and the balance?

1. You sign the PI and wire the deposit. We confirm the order once both are in.
2. Production. Our lead time is 20–30 days. Ask us when the count starts for your order, so you can plan the balance.
3. We ask for the balance before shipment. You wire the remaining 70%.
4. The goods are shipped once the balance has been received.

Which documents to look at before you pay the balance is a separate topic. We will cover it in its own guide.

Is a deposit-and-balance term risky for the buyer?

It asks you to pay before you receive the goods, and trade.gov is open about that from both sides. It calls cash-in-advance "the least attractive option for the buyer, because it creates unfavorable cash flow", and adds: "Foreign buyers are also concerned that the goods may not be sent if payment is made in advance."

What you can control is who you pay and on what document:

• Pay only against a PI you have checked and signed.
• Check that the beneficiary name and bank details match the PI before you send money.
• Confirm any change of bank details through a second channel. The FBI's Internet Crime Complaint Center advises: "Use secondary channels or two-factor authentication to verify requests for changes in account information with the intended recipient." If bank details change in an email, stop and confirm by phone or video call.
• Keep your bank's wire confirmation. It is your record of what you sent, to whom and when.

Whether a deposit term suits your business, and how you fund it, is your decision and your bank's. We do not give financing advice.

FAQ

Can I pay the balance when the tires arrive at my port?

No. Our term is the balance before shipment, which means before the goods leave. Arrival at your port comes later, after the sea transit.

Is my order confirmed once I sign the PI?

Not yet. An order is confirmed when you have signed and returned our PI and we have received the 30% deposit. Both are needed.

What is the difference between T/T and a wire transfer?

In this context they mean the same thing: an international bank-to-bank transfer, sent using the bank details on the PI.

How long does the deposit take to reach the seller?

It depends on the banks involved. As one example, Bank of America says international wires typically arrive in 1–5 business days, with possible delays from currency, the receiving bank, holidays or an intermediary bank.

Is this legal advice?

No. This page explains our own payment process. For contract or legal questions, ask a qualified adviser.

Questions before you pay?

TIREO LLC is a US company owned by Shawn and the overseas sales company for products made by Qingdao Zhengya Rubber Industrial Co., Ltd. in Qingdao, China. If you are preparing your first order, start with how to write a tire RFQ, check your PI with our proforma invoice checklist, or contact us with your questions about payment.

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