C.O.D. means to allow your customer to pay for the goods you supply at the time they receive them (on delivery), rather than via invoice after delivery or at the time of the order.
It can be considered a risk as you are allowing your goods to leave your premises without payment, so it’s best to offer this service only to customers with whom you’ve already had dealings.
Letter outlining C.O.D. Terms – sample 1
Thank you for your inquiry about our Cash On Delivery terms. We are delighted to let you know that we do offer C.O.D. as follows:
Cash On Delivery (C.O.D.) terms.
I/We can only supply our goods on a C.O.D basis under the following terms:
Your acceptance of our quote and your confirmation order form the basis of my/our contract to supply and your contract to pay under the terms contained within said quote.
All goods remain the property of the supplier until full, cleared payment is received from the customer – this must be in the form of cash (in local currency) or, where appropriate, by an authorised debit/credit card payment or confirmed direct bank transfer payment at the time of delivery of the goods.
Any discrepancy in quantity(quantities) must be identified at the time of delivery and brought to the supplier’s attention immediately.
I/We thank you for your custom and look forward to continuing our/building a strong business relationship and if I/we can be of further assistance, please contact me/us.
Please let us know at the time of the order that you wish to take advantage of our C.O.D. terms.
[Contact details – phone, email etc]