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• Credit terms


  The agreement between a seller and buyer that lists the timing and amount of payments the buyer will make in the future

  
• Credit terms


  • A contract between the buyer and seller about the timings and payment to be made for the goods bought in the future
  • Set the time limits for your customers' promise to pay for their merchandise or services received

  
• The credit terms of most businesses are either 30, 60, or 90 days. However, some businesses may have credit terms as short as 7 or 10 days
• Longer credit terms mean your business will have to wait longer for the cash inflows from the collection of accounts receivable. In the meantime, your business may experience a cash flow shortage
• Trade discounts


  May help speed up your cash inflows from accounts receivable, and help reduce a cash flow shortage created by extended credit terms
• Credit exposure


  The total amount of credit to be extended to a borrower by a lender
• Early payment discount


  Offered by some companies in order to encourage credit customers to pay sooner
• Late payment penalties


  The rate of the penalties is driven by the country's inflation and interest rate. Every country follows the different policies
• Credit analysis


  A method through which the credit worthiness of a business or organization can be calculated. The main objective is to see whether both the borrowing and the lending facility being proposed and to assign risk rating
• The late penalties must be shown in the sales conditions, in the business contract and in the invoice
• Credit terms policies in the Philippines

  Relate to other Southeast Asian countries
• RA 3765 (AN ACT TO REQUIRE THE DISCLOSURE OF FINANCE CHARGES IN CONNECTION WITH EXTENSIONS OF CREDIT) affects consumer credit