GlossaryEN1 min readUpdated: Jun 26, 2026
Deferred Payment
A seller ships the goods but the invoice is settled only at an agreed future date—typically 30, 60, or 90 days after delivery or invoicing.
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Source: https://www.investopedia.com/terms/d/deferred-payment.asp
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Definition & Explanation
A seller ships the goods but the invoice is settled only at an agreed future date—typically 30, 60, or 90 days after delivery or invoicing. This credit term gives the buyer time to inspect or resell goods before payment falls due, easing short-term cash flow. The seller carries the default risk throughout the credit period; when dealing with unfamiliar buyers, exporters therefore often require a letter of credit or bank guarantee as protection. In customs law, the term deferred payment refers to a separate scheme that allows importers to consolidate duty payments and settle them periodically, rather than clearing each shipment individually.
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