Payment Terms

Payment terms are the conditions agreed upon between a buyer and seller regarding how and when payment should be made for goods or services. They specify details like the amount owed, the deadline for payment, and any discounts for early payment or penalties for late payments. Clear payment terms help ensure both parties understand their financial responsibilities, promote smooth transactions, and avoid misunderstandings. These terms are typically outlined in a contract or invoice and can vary depending on the agreement, industry practices, or relationship between the parties.