At Hula Global, payment terms are structured to ensure transparency, operational efficiency, and smooth execution across all stages of engagement. As our services span product development, sampling, manufacturing, logistics coordination, and delivery, payment obligations vary depending on the type of charge and the stage of service delivery.
This Payment Terms Policy outlines the applicable payment structures for different categories of charges and establishes clear expectations for timely settlement. All clients are expected to review and adhere to these terms prior to initiating development, production, or shipment.
Product Development Charges
Payment Terms: 100% Advance Payment
Product Development Charges must be paid in full before product development activities commence.
These charges cover services such as design coordination, technical feasibility assessment, supplier alignment, costing analysis, and development planning. As product development is a service-based engagement that requires upfront allocation of resources, advance payment is mandatory.
No product development work will be initiated until full payment of Product Development Charges has been received and acknowledged by Hula Global. These charges are independent of future production decisions and remain payable regardless of whether the project proceeds to sampling or bulk manufacturing.
Adhoc Expenses
Payment Terms: Periodic Settlement Based on Aggregate Value
Adhoc expenses include costs incurred on behalf of the client during the course of engagement. These may include courier charges, logistics-related expenses, documentation costs, or other incidental expenditures necessary for project execution.
Settlement of adhoc expenses is structured as follows:
For total expenses under USD 5,000 (aggregate):
Payments are settled on a monthly basis against submitted invoices.
For total expenses exceeding USD 5,000 (aggregate) Payments are settled on a quarterly basis, allowing consolidated billing and streamlined reconciliation.
All adhoc expenses are billed based on actuals and are supported by appropriate documentation where applicable. Clients are expected to clear these invoices within the agreed settlement period to avoid delays in ongoing operations.
Purchase Orders
Payment terms for purchase orders depend on the delivery model agreed upon at the time of order confirmation. As all production is customised and made-to-order, advance payments are required to initiate manufacturing.
Ex-Factory Orders
Payment Structure:
50% advance payment at the time of purchase order confirmation
50% balance payment before dispatch from the factory
Ex-factory orders refer to shipments where responsibility transfers to the buyer once goods are released from the manufacturing facility. Under this model, Hula Global initiates production only after receiving the advance payment.
The remaining balance must be settled prior to dispatch. Goods will not be released from the factory until full payment is received.
DDP Orders (Delivered Duty Paid)
Payment Structure:
50% advance payment of the product price at order confirmation
Remaining product value before dispatch
Freight, duties, and other logistics charges payable before final delivery
DDP orders include door-to-door delivery, incorporating freight, customs clearance, and applicable duties. Given the higher logistical complexity and third-party cost involvement, payment is structured to ensure timely settlement of both product and logistics components.
Production begins only after receipt of the advance payment. The remaining product value must be cleared prior to dispatch from the factory, while freight and related charges must be settled before final delivery to the client’s designated location.
General Payment Conditions
All payments must be made in accordance with the agreed currency and payment method specified in the invoice.
Delays in payment may result in production holds, shipment delays, or suspension of services.
Hula Global reserves the right to revise payment schedules in case of significant changes to order scope, volume, or delivery terms.
Failure to comply with the payment terms outlined above may impact project timelines and delivery commitments.
Policy Summary
Product Development Charges require full advance payment
Adhoc expenses are settled monthly or quarterly based on total value
Purchase orders require a 50% advance payment
Balance payments must be cleared before dispatch or delivery
Production and shipment are contingent upon timely payment compliance
Conclusion
Hula Global’s Payment Terms Policy is designed to support efficient execution, financial clarity, and risk mitigation across all engagements. By clearly defining payment structures for each charge type, we aim to ensure seamless collaboration and uninterrupted service delivery.
Clients are encouraged to review these terms carefully and plan payments accordingly to avoid operational delays. These payment terms form an integral part of all commercial agreements with Hula Global and are applicable unless otherwise agreed in writing.
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Programs
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