Why MOQ and Payment Terms Deserve Your Attention
Two numbers decide whether a fabric order works commercially: the minimum order quantity (MOQ) — which determines how much capital you tie up — and the payment terms — which determine who carries the risk. Get both right and a first order with a Chinese mill is straightforward. Get either wrong and you either overstock fabric you cannot sell or pay for goods that never ship.
This guide is written from our own order desk in Keqiao. We explain the standard ranges, what is genuinely negotiable, and how to pay safely. Where numbers vary, we give ranges rather than pretending one figure fits every mill.
Part 1: Fabric MOQ — Typical Ranges by Order Type
MOQ is not arbitrary. It is driven by dyeing-batch economics, loom changeover time, and the minimum run a dye house will accept. The single most important distinction is stock (ready) fabric versus custom production.
Stock / Ready Goods: Lowest MOQ
When a mill or market merchant already holds the fabric in stock, MOQ is small — often a single roll or a few hundred meters.
| Scenario | Typical MOQ | Notes |
|---|---|---|
| Market stock, existing color | 1 roll upward (~50–120 m) | Common in Keqiao trading halls; mixed rolls possible |
| Mill stock program | 100–500 m per color | Popular for sampling and small brands |
| Stock with minor finishing | 300–800 m | e.g. a coating or sanforizing pass on stock greige |
Custom Production: Higher MOQ
Custom orders — your color, your print, your construction — require dyeing or weaving to order, so MOQ rises. Ranges below are typical for cotton and cotton-blend apparel fabrics; exact figures always depend on the construction.
| Custom Order Type | Typical MOQ per color/design | Main cost driver |
|---|---|---|
| Solid piece-dye (your color on stock greige) | ~1,000–2,000 m | Dye-bath minimum |
| Yarn-dyed (e.g. gingham, checks) | ~2,000–3,000 m | Yarn dyeing + loom setup |
| Woven-to-order construction | ~3,000–5,000 m | Warping/sizing a new beam |
| Rotary/flatbed print | ~2,000–3,000 m per design | Screen engraving + print run |
| Digital print (our custom route) | ~100–500 m per design | No screens; low setup, higher unit price |
Key insight: MOQ and unit price trade against each other. A short run is almost always possible — at a higher price per meter. If a mill says an MOQ is impossible, ask instead what the price would be at your quantity. Digital printing is the reason small brands can now launch custom prints without committing thousands of meters.
What Else Counts Toward MOQ
- Per color, not per order: MOQ usually applies to each colorway. Five colors at 1,000 m MOQ means 5,000 m total — confirm this before approving lab dips.
- Sample/trial orders: mills often accept a paid sample order below MOQ to build the relationship; treat the sample cost as part of evaluation.
- Repeat orders: proven repeat customers commonly negotiate lower MOQs over time.
Part 2: Standard Payment Terms for Chinese Fabric
The overwhelming default for fabric export from China is T/T (telegraphic transfer) with a deposit before production and the balance before or against shipment. Here is how the common structures work.
The 30/70 T/T Structure (Industry Standard)
| Stage | Typical Amount | When Paid |
|---|---|---|
| Deposit / down payment | 30% of PI value | After PI confirmation, before production/dyeing starts |
| Balance | 70% | Against copy of shipping documents (B/L copy), before original docs release |
This split is the normal balance of risk: the deposit covers the mill’s committed dyeing and material cost, while you retain leverage on the 70% until the goods exist and are booked.
Other Common Structures
| Term | Typical Use | Buyer Considerations |
|---|---|---|
| T/T 30/70 — balance before shipment | Most repeat orders | Mill may require balance before loading; inspect first |
| T/T 100% in advance | Small/sample orders; sometimes first orders | Highest buyer risk; insist on verification and inspection |
| L/C at sight | Large orders; buyers who cannot prepay | Bank-mediated, strict document compliance; fees on both sides |
| Net terms / OA (open account) | Long-established relationships only | Rarely offered to new buyers; earned through history |
| Escrow / trade-assurance platform | Orders booked via a B2B platform | Platform holds funds; follow its dispute rules |
Expect for a first order: a mill will usually not grant open account or balance-after-arrival terms to an unknown buyer. That is normal risk management, not a red flag. A documented 30/70 T/T with an inspection clause is a reasonable place to start.
Part 3: What Is Negotiable (and What Is Not)
Reasonably Negotiable
- MOQ — especially for stock-adjacent orders, digital print, or against a modest price increase.
- Deposit percentage — strong buyers on large orders sometimes move from 30% toward 20%; small first orders rarely move below 30%.
- Balance trigger — paying against B/L copy versus after inspection; worth agreeing in writing up front.
- Sample fees — often deductible from the first bulk order.
Usually Not Negotiable
- Payment to a personal or third-party account as a “discount” arrangement — this is a classic fraud pattern; legitimate companies collect in their company name.
- Full open-account terms before a track record exists.
- Below-cost pricing simply to meet your target — if a price is far below comparable quotes, specifications are usually being quietly downgraded.
Part 4: How to Pay Safely — A Practical Checklist
- Verify the beneficiary. The bank account name on the PI should match the company’s registered/export name. Reconfirm bank details by phone or video if they change mid-order — payment-redirection email hacks are real.
- Use a written proforma invoice. It should state construction, composition, weight, width, color/design, quantity, unit price, terms, delivery window, port, and tolerance.
- Agree tolerances. Bulk fabric commonly ships with a small quantity tolerance (e.g. ±5%) and is invoiced on actual shipped meters. State how short/over shipment is billed.
- Inspect before the balance. Arrange quality control (third-party inspection or your own agent) once bulk is ready, so the 70% is paid against conforming goods rather than promises.
- Keep documents. PI, payment receipts, inspection reports, B/L, packing list — these protect you and support customs clearance.
- Avoid irreversible payments to unverified parties. T/T to a verified company account is standard; cryptocurrency, Western Union to an individual, or last-minute account changes deserve immediate caution.
Part 5: Worked Example — A Typical First Order
A buyer ordering 3,000 m of a custom solid cotton fabric at a quoted FOB price might experience the following:
| Step | Action |
|---|---|
| 1 | Specs agreed; PI issued with 30/70 T/T, ±5% tolerance, FOB Ningbo/Shanghai |
| 2 | Buyer pays 30% deposit; mill books greige and lab dips |
| 3 | Lab dip approved; bulk dyeing and finishing run |
| 4 | Bulk ready; inspection arranged; report confirms specs |
| 5 | Goods booked; B/L copy sent; buyer pays 70% balance |
| 6 | Original documents released; goods clear at destination |
Every step is evidenced on paper. That transparency — not the lowest possible price — is what makes a first China fabric order safe.
Frequently Asked Questions
Can I order below MOQ for my first collection?
Often yes, via stock fabric or digital print, or by accepting a higher unit price on a short custom run. Ask for the price at your quantity rather than only whether the MOQ is possible.
Is paying 30% before production normal?
Yes. The 30/70 T/T structure is the standard for Chinese fabric export and covers the mill’s committed material and dyeing cost.
What is safer — T/T or L/C?
For most orders, verified T/T 30/70 with an inspection clause is simpler and cheaper. An L/C at sight adds bank-level document control for large orders but involves strict compliance and fees on both sides.
Why did the supplier ask for payment to a different account?
A sudden change of beneficiary, especially a personal or third-party account, is a warning sign of fraud or account compromise. Reverify independently before sending any funds.