Understanding Standard Payment Terms in Japanese Business

The standard payment terms in Japan are "payment after delivery" (手形決済), typically ranging from 30 to 90 days depending on the industry. For international transactions, terms may differ: foreign customers might be required to pay a deposit in advance, or the payment window may be shorter than the domestic standard. Due to global disruptions like the COVID-19 pandemic, some Japanese companies have offered more flexible terms to support partners. Always verify and agree on specific payment terms with your Japanese business partners before finalizing any commercial agreement.