Pay the factory directly, to a bank account in the factory's own name, at the price written in your purchase contract. Pay the agent's fee separately, against the agent's own invoice.
Keeping the two payments apart is the simplest protection you have. It shows you the real factory price, and it means your money never sits in an account you do not control.
Why direct payment is safer
- You see the actual price the factory receives, with no hidden margin added on the way.
- Your money goes to the company that is legally responsible for the goods.
- The bank records match the contract, the invoice and the export documents.
- You can claim against the factory directly if goods arrive wrong.
- There is no risk of your payment being held, delayed or lost in a middleman's account.
When an agent asks you to pay them
Some agents ask you to pay the full order value to them, saying they will pay the factory. Sometimes the reason is convenience. More often it is because the agent is really a trader, or is taking a share of the price. Either way, you lose sight of what the factory is paid.
If an agent insists, ask for the factory's own invoice and its bank details on its letterhead, and compare them. Our guide on checking that your agent takes nothing from factories explains the wider checks.
Check the bank details every time
Payment fraud often starts with an email that says the factory has changed its bank account. Treat any change of bank details as suspect until it is confirmed by phone or video call with a person you already know at the factory, using a number you already have.
The account name should match the legal name of the factory on the contract and the invoice. If it does not, stop and ask why before any money moves.
Payment terms with the factory
Terms are agreed between you and the factory, not dictated by the agent. Common structures include an advance with the balance against a copy of the shipping documents, a letter of credit, or payment against documents through banks. The right choice depends on the amount, your history with the factory and the risk each side is willing to carry.
Whatever the terms, link the final payment to evidence. A passed inspection report and loading photos are reasonable conditions before the balance is released. The documents to expect are listed in the document pack your broker will ask for. Your bank can advise on which instruments suit your country and order size.
Next step
With us, you pay the factory directly at the price in your contract, and you pay our fee separately under a written agreement. The factory's name and invoice are always visible to you. To see how this would work for your order, book a free sourcing review.