Deferred Payment Credit

Tags: Glossary

A financing arrangement where the buyer agrees to pay for goods or services at a later date.

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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.

What is Deferred Payment Credit?

Deferred Payment Credit refers to a type of credit arrangement where a buyer is allowed to purchase goods or services on credit and delay payment for a specified period of time after the delivery of the goods or completion of the services. The seller extends credit to the buyer and agrees to receive payment at a later date, typically with interest or other fees added.


Deferred Payment Credit is often used in international trade, where the buyer may need time to inspect the goods and arrange for financing or payment. It can also be used in domestic transactions where the buyer needs to conserve cash flow or does not have immediate access to funds. 

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