Payment Terms
There are a few different types of payment terms that are commonly used in procurement contracts. Here is a brief definition of each:
-Net 30: This means that the full amount is due within 30 days of receipt of invoice.
-2% 10 net 30: This means that the full amount is due within 30 days of receipt of invoice, but a 2% discount is given if the invoice is paid within 10 days.
-COD (Cash on Delivery): This means that payment is due at the time of delivery.
-FOB (Free on Board): This means that the buyer pays for shipping costs, but not for any other charges associated with getting the goods to their destination (e.g. import duties).