credit terms

Credit terms are the conditions set between a seller and a buyer regarding payment for goods or services. They specify how much is owed, when payment is due, and any discounts for early payment or penalties for late payment. For example, a common term like "Net 30" means the buyer has 30 days to pay after receiving the invoice. Clear credit terms help ensure both parties understand their financial obligations and timelines, reducing misunderstandings and fostering smooth business transactions.