Payment terms are where trust between a buyer and a factory is tested. Get them right and both sides can plan. Get them wrong and even a good order can end in a dispute. Here is how made-to-order imitation jewellery terms usually work, and why.
Why factories ask for an advance
A made-to-order piece is built for you. Before dispatch, the factory has already paid for:
- Metal for casting
- Stones, beads and findings
- Plating chemicals and power
- Karigar wages for casting, setting and finishing
- Moulds for new designs
If a buyer cancels after production, the factory holds stock made to someone else's specification - it cannot easily sell 200 pieces of another buyer's colour mix. That is why "100% on delivery" rarely works for made-to-order jewellery: the advance is the buyer's commitment, and the pre-dispatch approval is the factory's. Credit terms usually come later, once a relationship has a track record of orders and on-time payments on both sides.
How 60/40 works at Jagruti
| Stage | What happens | Payment |
|---|---|---|
| Order confirmation | Design, finish, quantity and factory rate agreed on a pro-forma | 60% advance |
| Production | Mould-making, casting, plating and setting at our Kandivali East factory, checked against the approved sample; progress photos on request | Nil |
| Finished stock | We show the ready stock by design code on a video call | Nil |
| Approval | You confirm the goods match the sample | 40% balance |
| Dispatch | Goods packed and handed to the transporter you agreed, with the invoice | Nil |
You never pay the balance for goods you have not seen, and the factory never ships goods that have not been paid for. That balance of risk is why 60/40 has become common for made-to-order jewellery.
Why the video call matters
The balance payment is tied to your approval of the finished goods, not to a date. You see your actual stock, not a catalogue photo, before you pay the balance. That keeps the factory accountable for quality and gives you control.
Batch-wise payment on large orders
For orders of 1,000+ units, we can split production and payment into batches. Each batch follows the same pattern: advance, production, video approval, balance, dispatch. This helps distributors manage cash flow and take stock in stages.
Other terms you may see in the market
| Term | How it works | Who it suits |
|---|---|---|
| 100% advance | Full payment before production | Small or first orders with traders |
| 50/50 | Half before, half before dispatch | Common alternative |
| 60/40 with approval | As above | Made-to-order manufacturing |
| Credit | Pay after delivery | Long-standing relationships with wholesalers |
Protecting yourself as a buyer
- Get the agreed design, finish, quantity, rate and lead time in writing.
- Pay only to a bank account in the business name that matches the GST registration and invoice. If you are asked to pay a different account at the last minute, confirm by phone with someone you already know at the business before transferring.
- Ask for a GST invoice.
- Keep four records: the pro-forma, the payment receipts, the approved sample photos and the pre-dispatch video. If a question ever comes up about what was ordered and what was approved, those settle it quickly.
Protecting the relationship
Pay on time when you approve. Factories remember reliable buyers and prioritise them in busy seasons, which matters more than a small price difference before Diwali or the wedding peak.
See how we supply wholesalers or read about video approval before dispatch.
What if something is wrong at the video stage?
Point out the issue by design code while the goods are still at the factory: a stone colour off, a finish too dark, a clasp that looks weak. It is far easier to correct at this point than after dispatch. A fair factory will rework pieces that do not match the approved sample. Changes to what was approved, such as a new colour, are a new request and may add time or cost, so it helps to be clear which is which.