COD & TOPAY

The primary benefit to a business when it comes to COD, is that the payment period is typically shorter than with an invoice supplying bank details for a transfer, for example. Because the payment must be collected when the goods are delivered, this method can be useful for customers who have failed to pay or regularly have late payments.

Cargolink believes Cash on delivery provides better assurance that the business will receive payment for the products and that means a more reliable cash flow which in turn makes it easier to budget.

While there seem to be a number of positives of offering COD as a payment option, there are also some downsides. The main one is the higher risk of the delivery refusal. Basically, because the customer does not pay for the goods in advance, they can decide to reject the delivery and not provide payment.