According to AccountingTools, common payment terms include one or more of the following components: net, discount and end of month. Payment terms are rules a supplier or seller imposes on a buyer.Know More
A bill or invoice typically provides payment terms to indicate when the payment is due and whether a discount applies. Terms using "net" mean that the full amount is due. For example, "net on receipt" means the payment is due as soon as the buyer receives the goods or services. "Net 30" means the full payment is due within 30 days of the invoice date.
Discount terms indicate whether the seller is offering a discount in certain conditions. "Cash discount 1%" means the seller discounts the invoice amount by one percent if the buyer pays in cash. "Early payment discount 10%" is similar; the seller discounts the invoice amount by 10 percent if the buyer pays before the due date. Discount and net terms are often combined, as in "2% 10 net 30." This term indicates that the seller is offering a two-percent discount for a payment made within 10 days; otherwise, the payment is due within 30 days.
The term "EOM" stands for "end of month" and means that the buyer must pay the bill within a specified number of days following the end of the month. For example, "net 10 EOM" indicates the payment is due within 10 days after the end of the month.Learn more in Personal Loans
Common terms found in lease agreements include the terms of the tenancy, fees, deposits, cost of rent, utilities and the current condition of the rental unit, according to Nolo. An individual should read a lease agreement thoroughly and ask any questions that may arise.Full Answer >
A personal loan agreement should cover in detail how much money is being loaned, whether any interest is being charged, and when the loan balance is due to be repaid, along with the applicable payment schedule if the money is due to be repaid in installments, according to Nolo. This type of agreement is often called a promissory note. Though a loan agreement that has been properly signed by all parties involved is typically considered a binding legal document in all states, getting it notarized may be a good choice for added protection.Full Answer >
Obtain a payday loan by researching different lenders in your area. After selecting a lender, complete an application, and provide the required documentation. Review the loan terms upon approval, and then sign the required paperwork.Full Answer >
In the world of finance and economics, a letter of explanation is a formal letter to a financial institution that gives specific details regarding an incident or circumstance that is outside the normally accepted scope of business. In some circumstances, the letter of explanation is given directly to the major credit reporting bureaus to be given out with a person's credit report any time one is requested.Full Answer >