Build a payment schedule for your first order

Turn the maker's proposed terms into a dated payment schedule before placing the order. A percentage alone does not explain what it funds, what evidence comes first or whether the brand can meet the due date. How manufacturers get paid explains the payment arrangements; this exercise connects the chosen arrangement to the order.

01Create one row for each commitment

Record the amount and currency, what makes it due, the supporting documents, the due date and who checks the evidence. Add the bank charges and the time needed for the transfer to clear. Use the terms agreed with the maker; there is no standard split to copy into every clothing order.

Include development fees and separate material purchases where applicable. A sample invoice may be separate from the production advance. Leaving it out of the schedule understates the cash needed before the first sale.

02An illustrative sequence for an overshirt order

This is a planning example, not a payment clause or recommended commercial split. Suppose a maker proposes an advance to purchase approved fabric and a balance after an agreed inspection, before dispatch.

For the advance row, identify the fabric approval and the order version. Record whether the payment also reserves production time and what happens to unused fabric. If material is booked while fit remains unresolved, document the commitment being made before paying.

For the balance row, identify the inspection report, the person reviewing it and the agreed response to a failed check. Separately note the packing list and dispatch documents needed. Those records answer different questions: what was checked, what was packed and what was shipped.

Ask the maker to confirm the exact due date or the method for calculating it. Build in the agreed review and transfer time. Do not write a payment condition into an internal calendar that the maker has never accepted.

03Put other suppliers on the same calendar

Add transport, insurance where purchased, customs charges and warehouse receiving. Some may become payable before customers can buy the clothes. Compare the combined payments with funds available on each date, not only with the order's total budget.

If the plan relies on sales that have not happened, identify that dependency now. Discuss a revised order or schedule before making a commitment the business cannot fund. Payment after delivery needs the supplier's agreement; it cannot be created by changing a spreadsheet date.

04Check a changed invoice before changing the schedule

Match the invoice to the agreed quantity, order version and payment already made. Confirm revised bank details with a known contact using a separate channel before sending money. Keep the confirmation with the payment record.

If a production change alters the amount or timing, obtain the agreed revision. A discussion about a fault does not automatically suspend a contractual payment deadline. Have the dispute and payment terms reviewed when the agreement is prepared so both parties know the procedure.

The International Trade Administration's payment overview explains how advance payment, letters of credit and open-account arrangements shift payment risk. A bank arrangement is a separate decision from the clothing inspection plan.

05Keep the schedule usable after payment

Record the transfer reference, amount paid and remaining balance. Link each payment to its invoice and order. A colleague should be able to see the next due payment and the outstanding evidence without reconstructing the conversation from email.