Overseas dealers can reduce risk by structuring payment milestones as follows:
- Deposit (20-30%): Paid upon signing the contract and placing the order. This covers initial processing and holds the vehicle(s).
- Progress payment (40-50%): Due after vehicle confirmation (VIN assigned, configuration verified, photos provided) and before shipment. Some dealers pay after pre-shipment inspection results are satisfactory.
- Balance payment (20-30%): Paid either before release of the Bill of Lading (for cash buyers) or against shipping documents (for LC buyers). This ensures the buyer has control over the shipping documents.
For bulk orders (e.g., 10+ units), a Letter of Credit (LC) is recommended. LC milestones can be: 20% at sight against commercial invoice, 80% against presentation of shipping documents and inspection certificate.
Using these milestones protects the buyer’s cash flow and reduces the risk of non-delivery or quality issues. Starvia supports both T/T and LC structures. For more on LC, see our Letter of Credit FAQ.