Payment terms are general terms and conditions which regulate delivery and payment conditions in offer and price negotiations.
In the international trade context, standardized payment term clauses have emerged to facilitate trade. Terms of payment include, for example, the place of payment (e.g. on site, upon collection), the method of payment (e.g. cash, credit card), the payment procedure (e.g. cash on delivery, immediate bank transfer), or the payment deadline and payment date respectively (e.g. payable within 14 days, payment due February, 1).
Purchase agreements as well as obligations, from which payment obligations result, contain payment terms. This includes, for example, continuing obligations such as credit, electricity, mobile phone, internet or rental agreements. Depending on the bargaining power in a business relationship, payment conditions within a contractual negotiation are either influenced more by the provider or more by the buyer.