Quick answer
Many overseas suppliers ask for the balance of an order once production is finished and before the goods ship or the shipping documents are released. It's usually the largest single payment on the order and it falls weeks after the deposit, when cash may already be committed. Importers fund it with a line of credit, unsecured working capital or a property-secured loan, sized together with the border costs.
Key points
- The balance is typically the larger share of the order and falls due weeks after the deposit.
- Supplier release of goods or documents often depends on receiving the balance.
- Pre-shipment checks — inspection reports, photos, packing lists — protect you before you pay.
- Plan the balance and the border costs together; they often land within weeks of each other.
Why is the balance the payment that catches importers out?
The deposit gets all the attention because it’s first. But the balance is usually the bigger number, and it arrives at an awkward time. Weeks have passed since you placed the order. Other bills have come and gone. Perhaps the previous container hasn’t sold through yet. Then the supplier emails to say production is finished and the balance is due before they’ll release the goods.
If the money isn’t there, the goods sit at the factory. Your ship date slips, your customers wait and your selling season gets shorter. That’s why the balance deserves its own plan.
When is the balance usually due?
Terms vary by supplier and relationship, but common arrangements include:
| Arrangement | When the balance is paid | Who carries more risk |
|---|---|---|
| Balance before shipment | When production finishes, before goods leave the factory | Buyer |
| Balance against copy documents | After loading, when the supplier sends a copy of the bill of lading | Shared |
| Documentary collection | When the buyer’s bank receives the documents | Shared |
| Letter of credit | When compliant documents are presented to the bank | Balanced by the banks |
| Open account | On terms after arrival | Seller |
Newer relationships lean to the top of the table. As trust grows, many suppliers will move you down it. Our guide to negotiating deposit terms with overseas suppliers covers how to ask.
What should I check before I pay the balance?
Once the balance is paid, your leverage drops. Before you send it:
- Inspect. An independent pre-shipment inspection checks quantity, workmanship and packaging against your specification.
- Match the paperwork. The commercial invoice and packing list should match the order — units, cartons, weights and descriptions. Errors here cause trouble at the border.
- Confirm the booking. Check with your freight forwarder that space is booked and the cargo-ready date is real.
- Confirm bank details directly. Payment redirection scams target importers. Verify any change to your supplier’s bank details by phone using a number you already have.
How do importers fund the balance?
The same facilities that fund deposits usually fund balances, but sizing matters more here. Because the balance sits so close to freight, duty, GST and clearance costs, it’s sensible to fund those together rather than one at a time.
- Line of credit — draw for the balance, then again for border costs, and repay as the stock sells. See import line of credit.
- Unsecured working-capital loan — typically $5,000 to $500,000, sized on turnover and bank statements.
- Property-secured loan — $20,000 to $5,000,000 for larger orders or several containers at once.
If your balance is coming up and the cash is committed elsewhere, you can see if you qualify in about a minute. There’s no credit check to ask, and your details go to one person, not a list.
How does the exchange rate affect the balance?
If you pay in the supplier’s currency, the cost of the balance is set on the day you transfer it — not the day you placed the order. A movement between deposit and balance can add to (or trim) your landed cost. Some importers fix a rate for the balance in advance with their bank or payment provider to remove the guesswork.
There’s also a separate exchange rate for customs: the Australian Border Force converts the customs value of your goods using the rate prevailing on the day of export. That’s the rate your duty and import GST are calculated from. More on both in exchange-rate timing.
Illustrative example
Illustrative only. A furniture importer orders $120,000 of stock with 30% down and 70% before shipment. Eight weeks later the $84,000 balance is due — three weeks before the business’s quarterly BAS and in the same month as a large rent review. The border costs follow about four weeks after that. The owner sets up a facility that covers the balance and border costs in one go, rather than scrambling separately for each. The container ships on time and arrives before the spring selling period.
What documents does paying the balance unlock?
Under many arrangements, paying the balance is what gets you the documents you need to take delivery. The key one for sea freight is the bill of lading, which is evidence of the shipment and — for an original bill — a document of title the carrier releases the goods against. Suppliers may send original documents by courier, release them electronically, or instruct a “telex release” so the goods can be collected without originals. Your freight forwarder will explain which applies. Either way, the commercial invoice and packing list your supplier issues with the documents are what your customs broker uses to lodge the import declaration, so check them carefully before you pay.
What if the supplier is late?
A late factory pushes the balance later, but it also squeezes the time you have to sell. If your facility has a fixed term, a delay eats into it. Building a few weeks’ slack into your plan — and choosing a revolving facility where you can — reduces the pressure. The import cash timeline planner lets you test what a two-week delay does to your dates.
Ready to plan the balance properly?
If a balance payment is on the horizon, start your Trade Loan enquiry now rather than the week it’s due. Asking doesn’t touch your credit file, and nobody sells your details on. A real person will ring you to go through the order, the timing and the options. Please fill in the form accurately — particularly the amount and when it’s due — so we can match you properly from the first call.
Frequently asked questions
Why do suppliers want the balance before shipping?
Once goods have left the factory, the supplier has less leverage if the buyer doesn't pay. Asking for the balance before shipment, or before releasing the documents that let you collect the goods, protects them.
What can I check before paying the balance?
Common checks include a pre-shipment inspection by an independent inspector, photos or video of finished goods, the packing list and commercial invoice matching the order, and confirmation of the booking with the freight forwarder.
Can the balance be paid after the goods arrive instead?
Sometimes, with established suppliers. A documentary collection or letter of credit can also tie payment to the shipping documents. Otherwise, balance-before-shipment is common, especially with newer relationships.
How soon after the balance will I need money for duty and GST?
That depends on the transit time. For sea freight from Asia it's often a matter of weeks. GST on imports is generally payable before goods are released, so plan both payments together.
Does enquiring about balance funding involve a credit check?
No. There's no credit check when you first enquire. It's only discussed once you decide to go ahead with an option.