Payment Credit

Order Payment Credit is not a standard international trade term (such as a specialized term in Incoterms or UCP600). It usually refers to the payment credit limit or credit terms granted to the buyer under an order, i.e., a credit sale arrangement in which the seller, based on a credit assessment of the buyer, allows payment within a certain period after receipt of goods or documents. It is commonly used in long-term cooperation, when the buyer has good creditworthiness, or when the seller provides credit support to promote sales, such as OA (Open Account) or DA (Documents against Acceptance). Precautions: The seller needs to assess the buyer's credit risk and may require a bank guarantee, credit insurance, or advance payment; unlike a Letter of Credit (L/C), which is bank credit, order payment credit is commercial credit and carries higher risk. The difference from Documents against Payment (D/P) is that D/P is payment against documents at sight or usance, but banks are still involved, whereas order payment credit relies entirely on the buyer's reputation.