Paying five factories separately, in different currencies, on different triggers, is where multi-category programmes leak cash. The mechanics are fixable before the first deposit leaves.
Standard Thai export terms by scenario
| Scenario | Typical terms | Notes |
|---|---|---|
| First order, new supplier | 30% deposit, 70% before shipment | Balance should follow inspection, not invoice date |
| Tooled item | Tooling paid separately, then order terms | Tooling payment secures ownership |
| Repeat supplier, proven history | 30/70 or partial net terms | Earned over several clean orders |
| Larger contract value | Letter of credit | Cost only justified above meaningful value |
Tie the balance to inspection, not to the calendar
The single most valuable clause in a Thai purchase order: the balance falls due on a passed pre-shipment inspection against the signed golden sample. Pay on invoice date and your leverage disappears exactly when you need it.
Consolidate the payment schedule
When several suppliers feed one container, align deposit and balance dates to the shipment programme rather than each supplier''s preference. Buying through one accountable party turns five payment schedules into one, which also removes five sets of international transfer fees and reconciliation work — the wider case is in the supplier consolidation guide.
Currency exposure
Most Thai export quotations are in USD; some domestic-focused factories quote THB. If you sell in GBP, EUR or AUD, you are carrying two conversions. Fix the quotation currency in the purchase order, state which party bears bank charges, and for larger programmes consider forward cover. Never let a factory re-quote in a different currency mid-programme without a written rate basis.
Tooling payments are not order payments
Pay tooling on a separate invoice with the tool identified, and record ownership in writing. Bundling tooling into a unit price is the most common way buyers lose control of their moulds — see the tooling ownership guide.
Cash-flow view across a mixed order
Model the whole programme: deposits at week 4, tooling at week 4, balances at weeks 17 to 18, freight and duty at landing, and revenue weeks later. Multi-category launches tie up more working capital than buyers expect because deposits land simultaneously while revenue does not.
How TUSKO handles payments
You place orders through us, so there is one contract, one payment schedule and one currency basis instead of several factory relationships. The balance follows engineer-led inspection, tooling is invoiced and documented separately, and our fee is built into the order price with no retainer or separate advisory charge.
FAQ
What deposit is normal for a Thai factory?
Thirty percent on order with the balance before shipment is the common structure for export orders, with tooling invoiced separately. Higher deposits are sometimes requested for custom materials, and should be matched by clearer milestones rather than accepted as-is.
Should the balance be paid before or after inspection?
After a passed pre-shipment inspection, and the purchase order should say so. Once the balance is paid, resolving a defect depends on goodwill instead of contract, which is a weak position across borders.
Are letters of credit worth using for Thai orders?
They add bank cost and administration, so they mainly make sense at higher contract values or with a new supplier where the deposit at risk is large. For typical small and mid-size orders, milestone payments tied to inspection are usually more practical.
Which currency should I contract in?
Fix one currency in the purchase order, most commonly USD for Thai exports, and state who pays bank charges. Leaving currency open invites mid-programme re-quotes and makes landed-cost comparison across categories unreliable.