The terms of payment are agreements on financial debts. They form part of the Contracting policy and regulate the customer's payment obligations:
The method of payment that determines whether to pay semi-cash or cashless, by check or bill of exchange.
Trade-in, which can relate to used or new products in mutual business. The value of the respective product is usually to be estimated.
The payment period, which in the case of payment after receipt of the products is often granted in connection with a discount agreement, e.g. B. payable within 30 days net cash, within 10 days less 2 % discounts. The discount compensates for the waiver of a normal payment term and rewards compliance with the discount period.
Place of performance for payment
The place of payment, which determines where payment is to be made. The legal place of performance for the payment is the debtor's domicile or business premises at the time the contract is concluded. The contractual place of performance is the place agreed by the contracting parties.
The time of payment, which determines the day on which payment should be made. It can be agreed as a deposit or advance payment before delivery, as a cash purchase on delivery or as a target purchase after delivery. The granting of payment terms implies the willingness of the seller to act financing and the buyer's creditworthiness ahead.
In domestic trade, the terms of payment are usually agreed by general terms and conditions and are often linked to the terms of delivery. Special payment conditions apply to foreign trade.