Payment Plan

An order payment plan (Payment Plan) is an arrangement in a foreign trade contract for the buyer to pay for goods in installments, usually linked to the order's production progress and delivery milestones, such as advance payment, payment before shipment, and payment after arrival. Use cases include large orders, customized products, long-term cooperative customers, or buyers with poor credit, in order to balance risks for both parties. Notes: It is necessary to specify the payment ratio for each installment, trigger conditions (such as contract signing, production completion, bill of lading date), payment methods (T/T, L/C, etc.), and liability for overdue payment; avoid confusing it with 'payment method' (such as L/C, D/P), which refers to the payment instrument, while a payment plan is the allocation of time and amount. Compared with 'payment terms,' a payment plan is more specific and staged. A reasonable design can reduce the seller's funding pressure and bad debt risk while giving the buyer room for cash flow.