Payment Terms

[eggy75 0]

hi guys,

Anyone can advise me what is the standard payment terms that is widely adopted in the market?

[Dylanchua 4]

I don't think there are any standard payments; different firms have different contract payment terms;

There are

1) 30% Downpayment, 30% Upon Commencement, 30% progressive, 10% Upon Completion

2) 10% Downpayment, 40% Upon Commencement, 30% Upon Carpentry Work, 10% Upon Completion

3) 20% Downpayment, 30% Upon Commencement, 20% Upon Carpentry Work, 30% Upon Completion

Then some must pay design and consultation fee first. Basically, you should request for whichever payment you're comfortable with. You do not want to pay too much in case the ID/Contractor is a fraud. You also can not pay too little cause they won't be able to buy materials/supply labour and stuffs. Most companies I've talked to are flexible with the payment terms.

Edited January 14, 2015 by Dylanchua

[bepgof 20]

Payment terms and Delivery terms (incoterms) come hand in hand, they also associate with warranty terms. These 2 terms can be viewed from seller & buyer perspectives.

Payment terms:

- as simply as COD - like those transactions in hawker centers here.

- xx% downpayment, remaining payment at goods/service delivery.

- 30/60/90/120 days credit terms.

- LC, very common dealing with Bangladesh and India - their financial systems very 'enclosed'. $ exchange hands via both banks when goods/service exchange hand in countries. 'Irrevocable LC at sight' is a very common term here.

- TT (Telegraphic Transfer) - a form of advance payment

- 'Top up' card payment - advance payment.

- Liability damage

......