Different types of payment terms include cash in advance, deferred payment and cash on delivery, according to BusinessDictionary.com. These are conditions that allow the buyer to make payments on a specified date.Know More
Investopedia.com notes that cash in advance is money that is paid before a product is delivered. This payment term is common in the exporting business, especially with international exports. Cash in advance terms protect the exporter if the importer doesn't pay for the items.
Cash on delivery occurs when payment is made when the product arrives, according to Investopedia.com. The item is shipped back to the seller if payment is not made. Shipping companies use cash on delivery, and it protects the buyer from purchasing fraudulent items.
BusinessDictionary.com notes that deferred payments are payment obligations that are delayed until the buyer can begin the payment plan. Deferred payments may be 30 days or longer, depending on the provisions of the agreement.Learn More
To create a payment agreement, include the current date, the amount of money involved, the terms of the repayment and the personal signatures of the lender and borrower. It is wise to have witnesses present as well.Full Answer >
Banks and non-banks are the two primary categories of lending institutions. Banks include commercial banks, Internet banks, and savings and loans. Non-banks include brokerage firms and mutual fund companies. The main difference between the two types of lending institutions is that banks accept deposits, whereas non-banks do not.Full Answer >
A down payment is an amount of money that is paid up front when an item is being purchased on credit. This often occurs during the purchase of a vehicle or a home. This payment lowers the total amount of money borrowed for the purchase.Full Answer >
A used car can be purchased with bad credit by checking the credit scores a few months in advance of a purchase, and by shopping around for good deals and flexible loans, according to Edmunds.com. Depending on where the used car is purchased, expect a higher interest rate for the loan due to the low credit score.Full Answer >