5 Questions to Ask Before Paying a Factory Deposit
Paying a deposit to an overseas factory you have never worked with is one of the most nerve-wracking parts of product development. These five questions will tell you whether a supplier is worth trusting.
Every founder remembers the first time they wired money to a factory overseas. The mix of excitement and fear is real, and it never completely goes away.
The good news is that most factories are legitimate businesses with reputations to protect. The bad news is that even legitimate factories can be the wrong fit for your product, your volume, or your timeline. Asking the right questions before paying gives you the information you need to make a confident decision.
1. Can you show me recent production samples in my product category?
Any factory worth working with will have a library of past production samples. Ask specifically for products similar to yours in terms of material, construction, and complexity. Look for consistency, attention to detail, and whether the quality matches what you are targeting.
If they cannot or will not share samples, that is a significant red flag.
2. What is your current lead time and production capacity?
A factory might be technically capable of producing your product but fully booked for the next four months. Ask about their current order book, typical lead times for sampling and bulk production, and how many units they can realistically produce in your required window.
Be suspicious of factories that tell you exactly what you want to hear. Experienced manufacturers know their capacity and will give you honest timelines.
3. Who will be my day-to-day contact?
You need to understand who you are actually communicating with. Is it the factory owner, a salesperson, or a production coordinator? What happens when your contact goes on leave? How quickly do they respond to messages, and in what format?
Communication is where most offshore sourcing relationships break down. Get clarity on this before you pay.
4. What happens if the sample does not meet my specifications?
Ask them directly. A good factory will explain their sampling process, how many revision rounds are included, and at what point additional sampling fees apply. This is standard industry practice, not a warning sign.
What you are listening for is whether they understand the concept of a golden sample and take the approval process seriously. Factories that rush you to production before the sample is right will cost you far more in the long run.
5. Can you provide references from current clients?
Not every factory will share client references due to confidentiality, but many will. Even one or two conversations with existing clients can tell you more than hours of online research.
Alternatively, ask us. After 20-plus years in manufacturing, our on-ground teams in China and India know which factories deliver what they promise, and which ones do not.
The one thing all five questions have in common
They require the factory to demonstrate capability, not just claim it. Vague, evasive, or overly optimistic answers to any of these questions should give you pause. The right factory will welcome these questions because they know the answers reflect well on them.
For a more detailed walkthrough of the vetting process itself, read our guide on how to vet a factory before you pay a deposit. Or if you would like a second set of eyes before you commit, book a sourcing call and we will help you assess the risk.
Frequently asked questions
What is the most important thing to confirm before paying a factory deposit?
That the factory has made products like yours before. Ask for recent production samples in your category and inspect them carefully for quality and consistency.
How do I tell if a factory is being honest about lead times?
Experienced factories give realistic timelines based on their actual order book. If a lead time sounds too convenient, ask how many orders they currently have running and what their typical production capacity is.
What is a golden sample?
The approved sample that becomes the agreed quality standard for bulk production. No reputable factory should move to a full production run without a signed-off golden sample.
Should I expect to pay for sampling revisions?
Some revision rounds are typically included. Additional rounds may attract fees, which is standard practice. Ask upfront how many rounds are included and what triggers additional costs.
What if a factory will not provide client references?
Confidentiality prevents some factories from sharing references. Ask a sourcing partner who has worked directly with the factory — first-hand knowledge from someone with direct experience is more reliable anyway.
Kristy Withers
Founder of Source Haus. 20+ years in product sourcing and manufacturing across China, India and Southeast Asia.
