payment terms

The period which a contractor, supplier or vendor must wait before payment falls due from a customer. Not to be confused with debtor days. Usually triggered by receipt of a valid invoice, though it may be triggered automatically by milestones. Typical payment terms range from as little as 7 days to as much as 120 days. Payment terms tend to be extended in falling markets, which can cause stress for unprepared suppliers.

Also known as trade credit.