Payment terms, explained as the terms which dictate when a vendor must be paid, vary in policy. Some businesses accept no payment terms: they receive cash on delivery (cod) or even before the product is given to the customer. Other businesses offer payment terms as a perk of becoming a client. These terms may be pay in 30 days, a 2% discount for paying within 10 days (2/1 net 30), and other terms which allow the customer to pay later. Additionally, vendor financing is another payment term, where the customer pays interest but is allowed to repay the cost of the product they have received as they see fit. A line of credit is a form of vendor financing when it is received from the provider of goods. Payment terms are often negotiable, so some businesses may have the policy of payment terms dnd. Dnd, here, means do not disclose. This generally means that the vendor will want to talk with the client to allow for assessment and negotiation of individual situations.
Additionally, payment terms and conditions exist. Conditions on payment may be as briefly listed above; cash on delivery (cod), payment is to be received in a foreign currency, and more. In this situation it is up to the vendor to decide the payment terms and conditions which should be offered to the client.
Additionally, certain payment methods may be required. Payment terms t t indicate that telegraphic transfer is required. Other methods differ greatly depending on the situations of both parties.