A term of payment, also sometimes called payment term, is documentation that details how and when your customers pay for your goods or services. Terms of payment set your business's expectations for payment, including when clients pay and what penalties they may receive for missed payments.
What are the terms of payment of a sale?
The terms of payment were 50 percent down and 50 percent on completion. The leading auctioneers offer inducements such as guaranteed prices to persuade sellers to part with their treasures, and generous terms of payment for buyers. The terms of payment of a sale state how and when an invoice is to be paid. Collins COBUILD Key Words for Finance.
What items appear in a term of payment?
Some items that may appear in a term of payment include: Payments in advance (PIA) represent customer payments before they pay the full amount. Net days confirm the time after the invoice due date that customers need to make the full payment, such as 15, 30, 60 or 90 days.
What are examples of immediate payment terms?
Examples of immediate payment terms include “cash on delivery” (COD) or “payable upon receipt.” You may negotiate into the contract that you can repossess goods if the customer does not provide immediate payment. These terms refer to the number of days in which a payment is due.
