payment-terms

Vocabulary Word

Definition

'Payment terms' define the agreed-upon conditions between a buyer and a seller on when payment is due for a product or service. They include the deadline and the payment method.

Examples in Different Contexts

For freelancers, clear 'payment terms' in contracts ensure timely payments. A freelancer might advise, 'Always clarify your payment terms upfront to avoid late payments.'

Practice Scenarios

Business

Scenario:

Our profit margin is impacted by the high number of delayed payments. We need to reconsider our finance strategy.

Response:

Let's establish better payment terms to facilitate timely payments and improve cash flow.

Tech

Scenario:

The second phase of web development has been finished. Can we proceed with the billing process for it?

Response:

Based on our payment terms, let's invoice for the completed phase and begin work on the next.