What are cod payment terms?

A customer's COD payment terms will typically be outlined in their purchase agreement with their supplier. When a COD customer places an order (online or through other means), they will select cash on delivery as their payment method.

What is cash on delivery (COD) & how does it work?

Whereas most ecommerce sales require that customers pay upfront before receiving a product, COD allows customers to manage cash flow by paying at the time of delivery. Cash on delivery also allows customers with minimal or less favorable credit histories to do business with vendors they would otherwise not be able to.

What is the difference between a cod and a standard invoice?

In a COD transaction, the payment term is cash on delivery, and the total payment is due at delivery. So, with COD, you get paid faster than with standard Net 30 invoices. The primary distinction between COD and standard invoicing is this shorter time frame to delivery, which leads to more immediate payment and improved cash flow.