Payment in full or in part before delivery. Common with new supply relationships; the proportion is a matter of negotiation.
Advance payment or a deposit means paying in full or in part before delivery. With new supply relationships this is common; the proportion is a matter of negotiation.
Advance payment means payment before delivery, often as a part deposit on order and the balance before dispatch. The proportion depends on volume, goods and mutual trust.
Why this matters for your import.
With new supply relationships a deposit is common and often unavoidable. What's decisive is to negotiate the proportion and secure the rest through safe payment channels.
How you'll come across the term.
With a new source a deposit is often standard. We negotiate the proportion and arrange the rest through secure payment channels.
Making a high advance payment to an unvetted source. We qualify suppliers in advance and structure the payment in a risk-aware way.