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International Trade vocabulary · Payment Methods and Letters of Credit

Payment terms

Meaning in international trade, with examples

nounCore term

In international trade, payment terms means: The agreed conditions for paying for goods: how much is paid, when, by what method and through which bank or document.

In Turkish: ödeme koşulları, ödeme şartları, ödeme şekli

How it is used

Stated in quotations, proforma invoices and contracts, for example '30% advance, 70% against copy B/L' or 'L/C at sight'. People negotiate, agree on, offer or extend payment terms.

Example sentences

  1. Our standard payment terms are 30 percent advance and the balance before shipment.

  2. The new customer is asking for 90-day payment terms on open account.

Common collocations

  • agree on payment terms
  • standard payment terms
  • extend payment terms
  • 60-day payment terms
  • advance paymentMoney the buyer pays before the goods are produced or shipped, either the full amount or part of it as a deposit.
  • letter of creditA bank's written promise to pay the seller a set amount, provided the seller presents documents that meet the exact conditions of the credit within the stated time.
  • open accountA payment method in which the seller ships the goods and sends the documents directly to the buyer, who pays later on an agreed date.
  • cash against documentsA payment term in which the buyer pays the bank first and only then receives the original documents needed to collect the goods.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Payment Methods and Letters of Credit

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