In business, "payment terms" are the rules about when and how a customer pays for something. Payment terms are sometimes decided by the seller, and sometimes negotiated between the buyer and seller.

They're ready to buy. All we need to do now is negotiate payment terms.

Payment terms can include things like:

• When must the buyer pay the seller?
• What forms of payment are allowed?
• Does the buyer have to pay interest?
• Are there any fees or penalties for paying late?

The actual cost of something isn't included in the phrase "payment terms".