How Long Do I Need to Be a Customer Before I Can Apply for Credit Terms on My Undercarriage Parts Purchases?

I know you worry about tying up your cash flow. You need quality parts, but paying upfront for every big order hurts. I felt that pain, too, when I first started buying.

Typically, I need you to be my customer for about 6 to 12 months with several successful, on-time, full-cash-upfront purchases before I will consider credit terms like Net 30 or Net 60 days. We start with secure payment methods like T/T deposits because trust is the foundation for offering credit on high-value items like undercarriage parts.

Getting credit from a Chinese manufacturer, like us at Dingtai, is all about building a solid track record of trust and reliability first. Let us look at what you need to know about getting credit for your next big order.

What Are Your Standard Credit Terms (e.g., Net 30, Net 60)?

You are likely asking how long you have to pay after I ship your parts. I get it. Cash flow is king.

My standard credit terms are typically Net 30 days after the Bill of Lading (B/L) date, but only after we establish a strong, trustworthy business relationship through initial, pre-paid orders. This term means you have 30 calendar days from the date the shipment leaves our facility to transfer the full payment.

When you buy from us, you want to make sure your parts arrive and you have time to check them before you pay the whole amount. This is fair. When we first start working together, we ask for a deposit, usually 30% to 50% of the total order value, to start production. Then, you pay the rest before we ship it out. This way, we both feel safe.

Why We Ask for Payment Upfront First

We are a direct manufacturer. We use the deposit to buy the steel and other raw materials we need for your specific parts, like your track chains ¹ and idler groups ². These are high-value, specialized items. If we produce a large batch of custom dozer sprockets ³ for you and you suddenly cannot pay, we have a big problem. This is a risk we have to manage.

• Risk Mitigation: The initial, upfront payment orders help us see how serious you are as a buyer. We look at your payment history with us. Every on-time, full payment builds your "credit score" with us. After several successful orders, we see you are reliable. This proven consistency is the main qualifier for moving to credit terms. The amount you purchase is important, but timely payment on smaller orders is the first priority.
• Trust Building: After you have completed a few large orders for items like excavator rollers ⁴ or track link assemblies ⁵ without any payment issues, we start to see you as a dependable long-term partner. This is when the conversation about credit really begins. We are looking for stability, not just a one-time big sale. We need to know you value the quality and technical support we provide, and you will honor the payment schedule.
• Industry Standard: For B2B international trade, especially for custom-made or large-volume heavy equipment parts, this initial payment structure is standard practice in China. Many competitors require longer. We are fast because we are confident in our product quality and technical support.

We do not want to stop working with you. We want to grow with you. Our goal is to shift you to Net 30 terms because it shows we trust you completely, just like you trust our parts. If you are eligible, the standard repayment time for Net 30 is 30 days from the B/L date. If you miss a payment, we pause all future shipments and immediately revert your account to the T/T deposit model. We only cancel the credit privilege entirely after a repeated failure to pay or a very severe single late payment.

We rarely offer Net 60 days unless you are a very large distributor or we have worked together for many years on massive volume. Net 30 days is the sweet spot for a strong, long-term relationship.

What Information Do I Need to Provide for a Credit Application?

You need to prepare a professional package for your credit application. It is not just about showing us your money. It is about showing us you run a stable, serious business.

To apply for credit terms, you must provide your company's official registration documents, recent financial statements (usually from the last two years), and a list of at least three reliable trade references from other suppliers. I also need to see your Dun & Bradstreet (D&B) report ⁶ or a similar credit rating agency report if you have one.

This process is like a bank loan. I need to make sure I am making a good investment in you. When you are a large distributor like, you already have these documents ready. You just need to organize them. This process is important because we are looking for consistency, which is a major pain point you have had with other suppliers. Consistency in payment means stability in your supply chain.

Key Documents for Credit Application

I need clear, verifiable information to approve credit. My finance team is very strict on this. We use these documents to check your ability to pay us back on time, every time. The more detailed your submission, the faster the approval process will be. If your business is technically focused, like mine, you will appreciate this thoroughness.

• Company Registration and Legal Documents: I need a copy of your business license and tax registration certificate. This proves you are a real and legal business in your country. We also need the contact information for your key stakeholders. We need to know who is responsible for the financial decisions.
• Financial Statements: I must see your company's balance sheets and income statements for the last two years. This shows me your sales volume and your overall financial health. I look for consistency and growth. We are looking for strong working capital to ensure you can manage a fluctuating inventory of undercarriage components ⁷.
• Bank Reference Letter: A formal letter from your primary bank stating your account standing and credit history with them. This is a very important piece of the puzzle. It should confirm you have a good relationship and no history of overdrafts or major financial distress.
• Trade References: A list of three to five non-related suppliers you regularly buy from, with their contact details. I will call or email them to ask about your payment habits. Did you pay them on time? This tells me a lot about your reliability. We prefer references from suppliers in the heavy machinery or parts industry who supply high-value goods.

The Role of Technical Expertise

Since you have a deep technical background, I know you understand that the technical details of our product quality also affect your credit. When we talk about undercarriage parts, you care about the material reports and heat treatment data of our track roller ⁸ shells and segment groups.

• Quality Consistency: If my parts are consistently high quality, your customers are happy, you sell more, and you pay me on time. Our ISO9001 certification and 100% quality inspection before shipment ensure this consistency. We provide this data to you to prove the value.
• Technical Support: We have over 20 professional technical staff. We are ready to give you the precise data you need. This professional support lowers your risk of receiving bad parts, which in turn lowers my credit risk with you. A lower risk means I can offer you better terms faster. The complete application package helps me build a strong case for granting you credit within our company.

Do You Partner With Any Credit Insurance Companies (Like Sinosure)?

Yes, as a responsible international B2B manufacturer and exporter, we actively evaluate using export credit insurance, primarily through state-backed entities like Sinosure (China Export & Credit Insurance Corporation) ⁹, especially for large-volume distributors like you. Using Sinosure helps me lower the risk of non-payment.

For a long time, many Chinese manufacturers avoided credit insurance because of the extra cost and paperwork. But the global market changed. We see the need to protect ourselves when we offer Net 30 or Net 60 terms. We are a direct producer, and we need to keep our cash flow healthy to keep making high-quality parts. This is vital for our stability and your stable supply.

How Sinosure Helps Us

Sinosure is a Chinese state-owned policy insurance company. Their main job is to support Chinese exporters by insuring against commercial and political risks in international trade. When we cover your order with Sinosure, it changes the game.

• Reduced Commercial Risk: If your company had a serious, unexpected financial problem and could not pay the invoice, Sinosure covers a large part of that loss for us. This makes us much more comfortable with extending credit. This protection allows us to focus on manufacturing, not chasing debt.
• Increased Credit Limit: Because the risk is lower, my finance team can approve a higher credit limit for your orders of excavator bucket teeth and dozer undercarriage components. We can offer you more flexibility and volume.
• Faster Approval: If you are a large, established US distributor, Sinosure might already have data on your company. If they approve the insurance for your company, our internal credit approval process becomes much faster. This can significantly reduce the standard 6-12 month waiting period.

How We Can Cooperate

I want to be very clear. Even with Sinosure, we still need you to pass our internal checks. Sinosure is an extra safety net, not a replacement for your good payment history with us.

• Volume Requirement: We usually only use Sinosure for major distributors with very large, recurring orders. It has to make financial sense for us to pay the insurance premium. The cost is high, so the order value must justify it.
• Shared Information: If we decide to use Sinosure for your account, we will need you to provide all the information I mentioned before, because Sinosure will conduct their own detailed risk assessment of your company. This ensures transparency on all sides.

This is a true partnership approach. We use tools like Sinosure to protect our business, which then allows us to take the step to support your business with better payment terms. We are committed to minimizing risks so we can maximize our partnership.

What Is the Credit Limit You Typically Offer to Distributors?

The credit limit is the most important part of the conversation. It tells you exactly how much you can order before you have to pay upfront again.

The typical credit limit I offer to qualified large distributors, after a successful 6 to 12-month relationship, is usually set between $50,000 USD and $150,000 USD, depending on your historical purchase volume and financial strength. This range ensures we can cover a standard monthly order for key items like track link assemblies.

When we set your limit, we do not just guess a number. We look closely at two things: what you bought from us before, and what your company can really afford. I need to make sure the limit is high enough to be helpful to you, but not so high that it creates a big risk for my company. Your pain point is stable supply, and a stable credit limit supports a stable supply. We aim for a limit that covers your average stock order without causing us undue risk.

How Is the Limit Calculated?

We have a simple formula for this. We base your potential credit limit on your past performance and the size of your business. We need to be able to trust your ability to pay for the volume of dozer track groups ¹⁰ or carrier rollers we ship.

• Average Purchase Volume: We look at your average monthly order value over the last year. A good starting credit limit is often one or two times your average monthly order value. If you order $50,000 worth of undercarriage parts every month, a $50,000 to $100,000 limit makes sense. This ensures the credit is meaningful.
• Company Net Worth: We check your financial statements to see your company's total value. The credit limit is a small percentage of your overall net worth. This protects us both. It shows us your capacity to handle debt.
• Product Type: The limit also depends on the parts you buy. High-value, custom parts like large dozer track chains or specialized final drive parts might require a more conservative limit than high-volume, standard bucket teeth. Custom parts are harder for us to resell if you default.

Increasing Your Credit Limit

Your credit limit is not fixed forever. We want you to grow your business because that means we grow, too. We can review the limit every 6 to 12 months.

• Pay On Time: The easiest way to get an increase is to pay all your Net 30 invoices on time, every time. After another 12 months of perfect payment history, we will be happy to review and increase your limit. Consistency is key here.
• Increase Order Volume: If you start ordering significantly more excavator rollers and idler cushions, we will also increase your credit limit to keep pace with your needs. This shows continued business growth and reliance on our quality products. We want to support your expansion.

I want to establish a long-term, stable relationship with you. Granting you a stable credit limit shows my commitment to being your preferred supplier.

Conclusion

Getting credit terms for your undercarriage parts purchases is a clear path of building trust and demonstrating reliability over 6 to 12 months, followed by a detailed credit application and a commitment to on-time payment. I am ready to move you to Net 30 as soon as you show you are ready.

Footnotes

1. See technical specifications and function of track chains in heavy machinery. ↩︎
2. Understand the critical role idler groups play in track tension and guiding. ↩︎
3. Detailed information on dozer sprockets and their contribution to undercarriage drive. ↩︎
4. Learn about the different types and applications of excavator rollers. ↩︎
5. Find a comprehensive guide to track link assemblies and their maintenance. ↩︎
6. Explanation of how the Dun & Bradstreet report evaluates business creditworthiness. ↩︎
7. Explore a visual breakdown of all components that make up a heavy equipment undercarriage. ↩︎
8. Technical details on the construction and material properties of a track roller. ↩︎
9. Official information on Sinosure’s mission and export credit insurance policies. ↩︎
10. Overview of dozer track groups and how to select the right fit for your equipment. ↩︎