When signing the customized or wholesale gym clothes or sportswear contract with Chinese manufacturers, you may asked to pay a certain amount of money in advance.
Should the China clothes manufacturers charge advance payment for gymwear? Why?
In ancient times, small businesses were all paid and delivered at the same time. When large-scale transactions required time to order goods, the seller would often collect part or full payment from the buyer. When the transaction is concluded, both the buyer and the seller get what they want, and the final win-win situation is fine. Now, when everyone starts a business, commodity trading is everywhere.
Advanced technology ensures the fast property of transactions. Whenever we click on the mobile phone or open the webpage, we can find the goods we want. This is part of our life. However, business to business transactions can not be as simple and fast as the B to C above.
For example, if an enterprise wants to order a batch of custom crop tops， it must find a custom sportswear manufacturer. The clothing style, fabric and size should be customized. The attributes of customized products determine that it takes time to complete, including the selection of fabric, style, and quotation.
At the moment of signing the contract, the suppliers will require the buyer to pay a certain amount of advance payment for gymwear (deposit) according to the size of the order. Why pay in advance? Because from the moment of signing the contract, both parties have their own responsibilities and obligations to ensure the completion of the transaction.
For the buyers who have paid the advance payment, the vast majority of manufacturers will be in strict accordance with the contract to produce, which is a constraint on China clothes suppliers. What if the China clothes manufacturer doesn’t act according to the contract? Can the unqualified products be accepted?
For the supplier, if the customers who cooperate for the first time do not pay the advance payment, there will be a certain risk. There are also such enterprises in society. The products are completed according to the requirements, but the buyers will not pay for the products. The profit is pitifully low. It is also a minimum guarantee for itself to compensate for all the hard-earned money. Advance payment for gymwear is a part of the contract which shows that both parties are honest and sincere in completing the transaction. If the buyer is not willing to pay the deposit, it is really hard to continue the cooperation. In China, buyers will pay the deposit(advance payment) to customize clothes. It’s common practice.
Of course, the premise mentioned above is that for customers who cooperate for the first time, for old and large-quantity customers or reputable enterprises, the advanced payment can be lower or omitted.