Installment Payment

Installment Payment refers to a method in which the buyer pays the seller the goods price in multiple installments according to the time nodes and amounts stipulated in the contract. It is commonly used in transactions involving large equipment, complete production lines, engineering projects, or high-value goods to ease the buyer's financial pressure and reduce the seller's collection risk. Use cases include: down payment + final payment, payment by project progress, payment by delivery batch, etc. Precautions: each installment amount, time, trigger conditions (such as shipment, acceptance), interest or fees, and default clauses must be clearly specified; unlike 'open account sales', installment payment usually has a clear installment plan, while open account sales is a deferred lump-sum payment; compared with 'letter of credit', installment payment relies more on commercial credit, and the seller bears higher risk, so it can be combined with a bank guarantee or credit insurance. Difference: installment payment emphasizes payment in multiple installments, while deferred payment emphasizes one deferred payment; the two differ in capital occupation and risk allocation.