Common use of Product Payment Terms Clause in Contracts

Product Payment Terms. Terms of payment shall be net thirty (30) days from Supplier's invoice date unless Supplier agrees in writing to other terms. Supplier shall not invoice for Products any earlier than five (5) days after shipment of the Products. Supplier reserves the right to revise or revoke Distributor's credit terms if Distributor is more than twenty (20) days past due on any payment to Supplier, Distributor has been late in payments to Supplier more than two times in any twelve (12) month period, or Supplier has commercially reasonable grounds to believe that Distributor's credit worthiness has diminished. In such instances, Distributor will be required to pay cash in advance of shipment of an Order. Cash in advance payments may be made (i) via wire transfer for payment of the full amount for Products ordered; or (ii) by an irrevocable letter of credit in a form and from a bank approved in advance in writing by Supplier. If Distributor orders Products that would cause Distributor to exceed its approved credit line (if any), Supplier may require Distributor to pay the excess amount of the Order by cash in advance. If credits are owed to Distributor by Supplier, Supplier will issue credits against Distributor's account and offset the credits against the next invoice. Distributor shall not deduct or offset credited amounts from any invoiced amounts due to Supplier without Supplier's prior written approval. Distributor shall be liable to Supplier for all of Supplier's costs of collection of any overdue invoice, including attorneys' fees and other costs of any related proceeding, lawsuit or appeal.