What a proforma invoice must contain before you pay a Chinese ODM supplier
Quick answer
A proforma invoice from a Chinese ODM supplier is a binding quotation, not a receipt. Before you pay, it must contain at least 14 specific data points — including Incoterms, payment terms, MOQ, unit price, lead time, and warranty — or you risk losing deposit leverage and facing unexpected costs.
- A valid proforma invoice must state the Incoterms (e.g., FOB Shenzhen) and the exact port of departure.
- Payment terms must appear as a percentage split, such as T/T 30/70, meaning 30% deposit and 70% before shipment.
- Unit price must be itemized per SKU, not lumped into a single total, to allow for accurate customs valuation.
- MOQ must be stated per SKU, not per order, to avoid ambiguity on mixed-carton orders.
- Lead time must be expressed in calendar days from deposit receipt, not from order confirmation.
- Warranty terms (e.g., 500 days) and the remedy for defects must be written on the invoice itself.
- Bank details on the proforma must match the supplier's legal entity name exactly to prevent wire fraud.
What is a proforma invoice and why does it matter before payment?
A proforma invoice is a formal, itemized quotation that a supplier issues before you pay, and it becomes your only legal reference if a dispute arises over price, quantity, or delivery terms.
Unlike a commercial invoice, which is issued after shipment for customs clearance, the proforma is the document you approve and pay against. In China's ODM manufacturing context, the proforma invoice is typically the first document that carries your supplier's legal entity name, bank details, and a commitment to ship at a stated price. Once you wire the deposit, the proforma becomes the baseline for the sales contract. If the supplier later claims that the price was "estimated" or that the lead time was "flexible," the proforma is the document that settles the argument.
For a first-time importer, the proforma is also your first test of the supplier's professionalism. A complete, precise proforma signals a factory that runs disciplined operations. A vague one signals trouble ahead.
What are the 14 mandatory fields a proforma invoice must contain?
A proforma invoice must contain 14 mandatory fields: supplier legal name and address, buyer legal name and address, proforma number and date, PO reference, Incoterms, payment terms, MOQ per SKU, unit price per SKU, total amount in USD, lead time, warranty, bank details, validity period, and signature or stamp.
Each field serves a specific protective function. Here is what each one means and why it matters before you transfer money.
Supplier and buyer legal identities
The supplier name must be the full legal entity, not a brand name or a trading desk alias. For example, if you work with LIGHT BDB, the proforma should show "LIGHT BRAND DESIGN BUSINESS (SHENZHEN) CO., LTD." — not just "LIGHT BDB." Your own company name and address must also appear exactly as they do on your business registration. Mismatched names are the most common cause of customs delays and bank holds.
Incoterms and port of departure
Incoterms determine who pays for freight, insurance, and customs clearance. For most Chinese ODM shipments, FOB Shenzhen is standard. The proforma must name the specific port (e.g., FOB Shenzhen, not FOB China). If the Incoterms are missing, you may be liable for export customs charges you did not budget for.
Payment terms as a percentage split
Payment terms must be explicit. A common structure is T/T 30/70, meaning 30% deposit to start production and 70% before shipment. Some suppliers accept L/C at sight for larger orders. The proforma must state which one applies to your order. If it says only "T/T" without a split, ask for clarification before paying.
MOQ per SKU, not per order
MOQ must be listed per SKU. A proforma that says "MOQ: 500 units" is ambiguous if you are ordering three different models. LIGHT BDB's MOQ tiers are Lite (100-499 units), Slim (500-999 units), and Pro (1,000+ units), and each tier carries different unit pricing and customization options. Your proforma should state the tier and the MOQ for each line item.
Unit price and total amount
Unit price must be itemized per SKU, and the total must be the sum of all line items. Do not accept a proforma with a single lump-sum total. Itemized pricing protects you during customs valuation and allows you to verify that the deposit percentage is calculated correctly.
Lead time in calendar days
Lead time must be stated in calendar days from the date the deposit is received. Industry-typical lead times for ODM wellness devices range from 4 to 8 weeks from deposit to FOB port. LIGHT BDB's standard is 4-8 weeks for most SKUs. If the proforma says "30 days" without specifying from when, ask for the exact trigger point.
Warranty terms
Warranty must be written on the proforma. LIGHT BDB offers a 500-day limited warranty, which is among the longest in the wellness-device category. The proforma should state the warranty duration and what remedy applies (repair, replacement, or credit). If warranty is not mentioned, assume there is none.
Bank details matching the legal entity
The bank account name on the proforma must match the supplier's legal entity name exactly. If the account name differs even slightly, stop and verify with the supplier via a phone call or video call. Wire fraud targeting first-time importers is common, and the proforma is where it often begins.
What payment terms should a first-time importer accept on a proforma?
A first-time importer should accept a T/T 30/70 split or L/C at sight, and should never agree to 100% payment before production begins.
The 30/70 structure is the industry standard for Chinese ODM factories. The 30% deposit covers raw material procurement, and the 70% balance is paid only after production is complete and before shipment. This split gives you leverage: if the goods are defective or late, you hold the majority of the payment until the issues are resolved. Some suppliers may ask for 50/50, but this is less common and generally reserved for custom tooling or highly customized orders. If a supplier asks for 100% upfront, treat it as a red flag.
For larger orders, L/C at sight is a safer alternative because the bank verifies shipping documents before releasing funds. However, L/Cs involve bank fees and document preparation, so they are more practical for orders above $20,000. For smaller first orders, T/T 30/70 is the pragmatic choice.
How do MOQ tiers affect the pricing on a proforma invoice?
MOQ tiers directly change the unit price on your proforma, with higher quantities yielding lower per-unit costs and more customization options.
Most ODM factories in the wellness-device category structure pricing in tiers. LIGHT BDB's tiers are Lite (100-499 units), Slim (500-999 units), and Pro (1,000+ units). The Lite tier is ideal for sampling and limited drops, but unit costs are highest. The Slim tier is the most popular for first-time importers because it balances cost and commitment. The Pro tier delivers the best unit cost and unlocks full customization, including custom molds, packaging, and firmware.
Your proforma should clearly state which tier applies to each SKU. If you are ordering 300 units of one model and 700 of another, the proforma must reflect the tier for each line item separately. Do not assume that a mixed order qualifies for a single tier.
| MOQ Tier | Quantity Range | Best For | Customization Level | Relative Unit Cost |
|---|---|---|---|---|
| Lite | 100-499 units | Sampling, limited drops, market testing | Basic (color, logo, packaging) | Highest |
| Slim | 500-999 units | First-time importers, small retail launches | Moderate (custom branding, some hardware options) | Mid |
| Pro | 1,000+ units | Established brands, large retail distribution | Full (custom molds, firmware, packaging) | Lowest |
What lead time and sample terms should the proforma specify?
The proforma should specify a lead time of 4-8 weeks from deposit to FOB port and a sample turnaround of 7-14 days, with the sample fee refundable against the first purchase order.
Lead time is one of the most disputed fields on a proforma. The document must state the exact number of calendar days from the date the deposit clears your supplier's bank account. Industry-typical lead times for ODM wellness devices range from 4 to 8 weeks, depending on component availability and order size. LIGHT BDB's standard is 4-8 weeks for most SKUs, which is competitive for the category.
Sample terms are equally important. A reputable ODM will offer a 7-14 day sample turnaround and will refund the sample fee against your first PO. If the proforma does not mention sample terms, ask for a separate sample proforma before committing to production. The sample stage is your only chance to verify build quality, material feel, and packaging before you commit to a full production run.
What certifications should be referenced on a proforma for wellness devices?
A proforma for wellness devices should reference the factory's quality and social-compliance certifications, such as ISO 9001, ISO 14001, BSCI, and UL registered factory status, but it must never claim medical-device certification.
Wellness devices — heated massagers, red light therapy panels, and light-based home products — are not medical devices. A reputable ODM will hold quality management certifications like ISO 9001 for manufacturing processes and ISO 14001 for environmental management. Social compliance certifications like BSCI (amfori) are important if you sell to European retailers. UL registered factory status indicates that the factory is audited for electrical safety standards, which matters for US market entry.
Be cautious of any supplier that claims ISO 13485 (medical device quality management) or FDA approval for wellness products. LIGHT BDB does not hold ISO 13485, and no wellness device is FDA approved. If a proforma references medical-device certifications, it is either a misrepresentation or a sign that the supplier does not understand the regulatory distinction. Both are reasons to walk away.
What are the honest risks of paying against a proforma invoice?
The honest risks of paying against a proforma invoice are wire fraud, vague warranty enforcement, and the fact that a proforma is not a legally binding contract in the same way a formal sales agreement is.
First, wire fraud is the most acute risk. If the bank details on the proforma are incorrect or the account name does not match the legal entity, your deposit can disappear. Mitigate this by verifying bank details via a video call with the supplier's sales manager and by confirming the account name matches the legal entity exactly.
Second, warranty enforcement is often vague. Even if the proforma states a 500-day warranty, the remedy — repair, replacement, or credit — may be undefined. Ask for the warranty terms in a separate document or email thread that you can reference if a defect arises.
Third, a proforma is not a substitute for a formal sales contract. It is a quotation, not a binding agreement. For orders above $10,000, request a separate sales contract that incorporates the proforma by reference and adds clauses for dispute resolution, force majeure, and quality acceptance criteria. This is standard practice among professional ODMs and should not be met with resistance.
Frequently asked questions
Below are common questions buyers ask before paying a Chinese ODM supplier against a proforma invoice.