payment terms
/ˈpeɪ.mənt tɜːmz/
Meaning
The conditions under which a seller expects to be paid by a buyer. This includes the timeframe (such as 'due in 30 days'), accepted payment methods, and any early payment discounts or late fees.
Examples
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Our standard payment terms are thirty days from the invoice date.
Our standard payment terms are thirty days from the invoice date.
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We need to negotiate better payment terms with our main supplier.
We need to negotiate better payment terms with our main supplier.
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Please review the payment terms in the contract before signing it.
Please review the payment terms in the contract before signing it.
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They offered us a two percent discount for agreeing to shorter payment terms.
They offered us a two percent discount for agreeing to shorter payment terms.
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The client agreed to our payment terms without any objections.
The client agreed to our payment terms without any objections.
Common Mistakes
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✗ What are the payment rules?
✓ What are the payment terms?
'Payment terms' is the standard professional collocation in business agreements. 'Rules' sounds too informal or dictatorial.
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✗ We agreed on a payment term of 30 days.
✓ We agreed on payment terms of 30 days.
The phrase is almost always plural ('terms') when referring to the overall agreement conditions.
Related Expressions
Practice
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According to our ___, the outstanding balance must be paid within 14 days.
💡 The agreed conditions for when and how to pay.
Show answer
payment terms
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New clients sometimes try to negotiate longer ___ to manage their cash flow.
💡 The timeframe and rules for paying invoices.
Show answer
payment terms