Financial Glossary
Credit Terms
What are Credit Terms?
Credit terms define the payment conditions set by a seller, including due dates, discounts, and penalties for late payment. Common terms include Net 30, meaning payment is due 30 days after the invoice date
💡 Examples of Common Credit Terms
|
Term |
Meaning |
|
Net 30 |
Payment due in 30 days |
|
2/10 Net 30 |
2% discount if paid within 10 days, otherwise full payment in 30 days |
|
COD |
Cash on Delivery, payment upon receiving goods |
📌 Related: Accounts Payable | Cash Flow
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