What are Credit Terms? (use them in Scenarios)

Credit Terms are the number of days in duration between an item being invoiced and that item being paid for.

Written by Ross MacLeod

Credit Terms, not to be confused with Payment Terms are the number of days in duration between an item being invoiced and that item being paid for. If I were to order an item on the 5th of April and pay for that item on the 10th of April, then the Credit Terms of that item would be 5 days.