Payment terms are the arrangement that you have with your creditor for repaying the obligation to them. For example, if you borrow $100 USD, and you agree to pay the lender $10 each month until the debt is repaid. These terms ($10 per month until fully paid) are the payment terms.
A promissory note is one legal document that states the terms of a sale. The terms outlined will generally state the following:First payment due date.Payment amount.Interest on the obligation.Number of payments to be made.Balloon payment details if part of the agreement.Other agreed upon terms for the parties.Signatures of buyer and seller.
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