Payment Distribution

Order Payment Distribution refers to the method in which, for a foreign trade order, the buyer divides the total payment into several installments to be paid at different time nodes according to the contract. It is usually combined with payment instruments such as advance payment, balance payment, letter of credit, and documentary collection. Common forms include '30% advance payment + 70% payment against copy of bill of lading' and '20% deposit + 80% letter of credit'. It is mostly used for large orders, customized products, long-term cooperation, or first transactions with new customers, in order to balance the funds and risks of both parties. Notes: The contract must clearly specify the proportion of each payment, trigger conditions (such as contract signing, completion of production, shipment, arrival at port), payment deadline, and currency; avoid merely writing 'installment payment' without executable milestones. Unlike 'payment method', payment distribution emphasizes the splitting of payments along the timeline, while payment method focuses on instruments (T/T, L/C, D/P). It is close to 'payment plan', but places more emphasis on proportions and node distribution. Reasonable design can reduce the seller's collection risk while easing the buyer's funding pressure.