Payment Terms / Credit Period

Customer credit period (Payment Terms / Credit Period) refers to the period granted by the seller to the buyer to delay payment after receiving the goods. It is a common credit condition in international trade. The length of the credit period directly affects the seller's cash flow and risk. A common form is '30-day credit period', meaning payment within 30 days after the goods arrive. Usage scenarios include long-term cooperative customers, large orders, or when competing fiercely for orders. Precautions: assess customer credit, and combine with letters of credit, credit insurance, or advance payment to reduce risk; the credit period is different from payment methods (such as T/T, D/P, L/C), which are specific payment instruments, while the credit period is a payment time arrangement. As opposed to 'sight payment', the credit period belongs to open account sales. Reasonably setting the credit period can promote sales, but an excessively long credit period may lead to bad debts.