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The price on a quote is rarely the price you actually pay. Payment terms and shipping terms — the Incoterms buried at the bottom of the sheet — move real money, and buyers who skip them often find the savings they negotiated quietly disappear in transfer fees, freight, and import risk.
This guide covers the payment terms and trade terms you will actually see on an interactive flat panel quote, what each one means for your cash and your risk, and why factory-direct orders tend to come with cleaner terms.
Common Payment Terms for Interactive Flat Panels
T/T — Telegraphic Transfer
The most common arrangement is T/T: a deposit, often around 30%, to start production, with the balance paid before shipment. It is straightforward, keeps costs low, and is the default for factory-direct orders. On larger orders some buyers split it further — a deposit, a payment against the bill of lading, and the remainder on delivery.
L/C — Letter of Credit
A letter of credit shifts payment to a bank guarantee, which protects both sides on large orders. The trade-off is cost and paperwork: L/C fees and strict document requirements slow things down and add expense, so it is usually reserved for bigger deals.
Small and Trial Orders
For a first trial order, simple T/T with a deposit keeps things moving. This is where a flexible MOQ matters — a supplier who lets you start small on clean terms is easier to do business with than one demanding full payment up front on a container you have never seen. Here's what MOQ actually means.
Incoterms: Who Pays for What
Incoterms define who pays for freight, insurance, and import risk at each stage. The four you will see most often:
- EXW (Ex Works) — you pay everything from the factory gate. Cheapest headline price, most responsibility on you.
- FOB (Free On Board) — the supplier covers everything until the goods are on the vessel; you cover sea freight and insurance from there. The most common for China-to-overseas orders.
- CIF (Cost, Insurance, Freight) — the supplier covers freight and insurance to your port. Easier for a first-time buyer, but you pay for that convenience in the unit price.
- DDP (Delivered Duty Paid) — the supplier handles everything including import duties to your door. Most convenient, highest price.
FOB and CIF are the workhorses for interactive flat panel shipments. The full shipping guide walks through each stage in more detail.
Why Factory-Direct Orders Have Cleaner Terms
A reseller has to protect its own margin, so its terms often include markups you cannot see — in the freight quote, the payment schedule, or both. Buying factory-direct removes that layer. You are dealing with the manufacturer, so the payment schedule, the Incoterm, and the freight quote all come from one source with no middleman padding.
Lonton keeps the process simple: factory-direct pricing, a flexible MOQ so you can start with a small trial order, and standard T/T terms. Buyers who want extra assurance can verify the factory before committing. Here's how to vet a factory.
How to Protect Yourself on Payment
- Vet the factory first. Check certifications, ask for a video tour, and confirm they are a real manufacturer rather than a trading company.
- Order a sample. A sample order lets you test quality and the supplier's process before you wire a large deposit.
- Match payment to the milestone. Deposit to start, balance against shipment documents — never full payment up front to an unproven supplier.
- Understand the Incoterm so you know exactly where your cost and your risk end.
Get Clean Terms and a Clear Quote
Tell us your sizes, quantities, and destination port, and we will send a quote with clear payment terms and an Incoterm you can actually plan around.
Contact us for a quote | Browse interactive flat panels
Frequently Asked Questions
What are the most common payment terms for interactive flat panels?
T/T with a deposit (often around 30%) to start production and the balance before shipment is the standard. A letter of credit is common on larger orders.
What does FOB mean?
Free On Board. The supplier covers everything until the goods are loaded on the vessel, and you cover sea freight and insurance from there.
What is the difference between FOB and CIF?
With FOB you arrange the freight; with CIF the supplier covers freight and insurance to your port, which is easier but costs more in the unit price.
Do I have to pay 100% up front?
No. The standard is a deposit to start production and the balance against shipment documents. Avoid full prepayment to a supplier you have not verified.
Why are factory-direct terms cleaner?
There is no reseller adding margin into the freight quote or payment schedule. You deal directly with the manufacturer, so terms come from one source.
