Payment Terms That Both Sides Accept
Common structures
| Structure | Risk profile |
|---|---|
| Deposit plus balance on delivery | Seller risks less, buyer risks more |
| Staged on milestones | Balanced, needs clear evidence |
| Escrow | Both protected, adds cost and delay |
| Letter of credit | Bank-backed, heavy paperwork |
| Consignment | Seller carries stock risk |
Getting to agreement
- Tie every payment to an observable event.
- For overseas sales, agree who bears transfer and currency costs.
- Put the schedule in the contract, not in an email.
Payment structures are commercial and legal matters. Confirm them in the contract.