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Home > QFINANCE Dictionary > Definition of payment terms

Definition of

payment terms

Operations & Production

firm's conditions for reimbursement for goods and services the stipulation by a business as to when it should be paid for goods or services supplied, for example, cash with order, payment on delivery, or within a particular number of days of the invoice date

Recommended Further Reading (Term count)
  • Efficient Invoicing Procedures
    This checklist describes good practice for invoicing procedures.
  • Choosing the Right Payment Policy
    This checklist looks at how to determine which payment policy is best for your business.
  • To Hedge or Not to Hedge
    by Steve Robinson
    Business has become increasingly international, and companies cannot ignore the impact of currency changes on cash flows, profitability, and their asset and liability position. No company is wholly immune—the cash received from exporting is affected by the relationship between the currency used by the customer to pay and the currency in which the cost of providing the product or service is denominated.Many commodity prices have been volatile,...
  • Accounts Payable Turnover Ratio
    The rate at which a company pays off its suppliers. The accounts payable turnover ratio is a short-term liquidity measure that quantifies how well a company pays its average payable amount over a single accounting period.

Definitions of ’payment terms’ and meaning of ’payment terms’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’payment terms’ and other financial terms with our online QFINANCE Financial Dictionary.

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