Payment Term vs Payment Method

What is the different for the Payment Term vs Payment Method ? 

In summary, payment method refers to how a payment is made (the means), while payment term outlines when and under what conditions the payment should be made (the rules). Both are essential for effective financial transactions.

Payment Term 

Payment term is the conditions under which a seller will complete a sale. Or in a simpler form, its explained as when will your buyers have to return you your money.

Cash= Paid in cash

NET 30= Pay within 30 days

EOM= Pay end of the month

50.50= Pay 50% today, and another 50% another day (you can set the date).

70.30= Pay 70% today, and another 30% another day.

Example:

1. 100% amount due in 30 days
   • Tenure: 30 days
   • Amount: 100%
2. You collect deposit first, and the balance pay break into 2 payment
   • Tenure 1: today, Amount: 50%
   • Tenure 2: 1 month, Amount 30%
   • Tenure 3: 2 month, Amount 20%
     Note: the total of amount should be 100%

Payment Method

Payment Method refers to the various means or channels through which a buyer can make a payment to a seller in exchange for goods or services. Choosing an appropriate payment method is crucial for both parties to ensure a smooth transaction. Here’s a breakdown of common payment methods and their characteristics：

O