What are credit terms in green coffee buying?

Credit terms define the payment timeline a seller extends to a buyer - how long the buyer has to pay for coffee after receiving it or after the invoice date. In green coffee, credit is most commonly extended by importers to roasters, rather than by producers or exporters to importers.

The most common format is Net 30 - meaning the full invoice amount is due within 30 days. Longer terms (Net 60, Net 90) are available to established buyers with a track record. Some sellers offer early payment discounts: a term written as "2/10 Net 30" means the full amount is due within 30 days, but a 2% discount applies if paid within 10 days.

Credit terms are a practical tool for roasters managing cash flow - allowing you to receive, roast, and sell coffee before the payment is due. For importers, extending credit is a risk they manage based on trading history and volume. New buyers typically start on tighter terms (payment upfront or on delivery) and work up to credit terms as the relationship develops.