What is a C.O.D payment? Here are 5 types of payment methods when owning a business.
Owning or buying a business that requires service, delivery or distribution requires a guaranteed payment, you need this payment to be made on the spot to ensure you have the capital to handle your business expense, so that is why a COD payment is applied unless you have a long term customer and set up a different payment method…
There are several different types of payments that route businesses can use to complete transactions. As the title for this article is labeled what s a cod payment? Let’s begin with that it is one of the most popular options for service-based businesses because you provided a job that required labor and time, so collecting cash when the service is complete becomes awarding and has a good feel to it… This article will discuss what a cod payment is and how it works what spells out C.O.D. Additionally, we'll provide some tips on how to use a cod payment safely and effectively in your business and when you should use and not use a cod payment.
What does C.O.D spell?
A cod payment (sometimes called a voucher code) and most commonly known as Cash on delivery is a type of voucher that can be used to pay for goods or services. Cod payments are issued by businesses and redeemed by consumers. They are typically used as a way to promote and reward customer loyalty. There are many different types of cod payment, each with its own set of terms and conditions. we'll take a look at the different types besides cod payments and how they work as well. We'll also explore some of the benefits of using cod payments for businesses.
What other payments are there besides C.O.D?
In today’s day and age, we have the technology to thank! You can simply collect any type of money over the phone, no cash no problem, you take out your phone add a swiper that’s connected to your business bank account, and make a payment, but what if it’s a long-term customer and wants something different? Let us explore these other payment options you might get asked about or might want to use.
15-day net: A 15-day is offering a client an invoice and they don’t have to pay it for 15 days, you drop the order and they have to pay that bill and then make the next order.
30-day net: Similar to a 15 but these extended out longer, it is 30 days you will wait to get paid…and it is very common with distribution, especially when its a new account and they just opened up most likely that will ask for a 30 or even a 60-day net, in this case, you will be giving them time to pay the bill till business takes off.
Bill 2 Bill: This payment method is used with mostly distribution services, if you have a customer that is ordering every week you can offer a customer a bill to bill deal, the first order they don’t pay it, but the order they make the following week they will pay the weeks before invoice and this goes on throughout the lifeline of the customer.
Pay over the phone: This payment method can work with certain types of businesses, let’s use an example, you own a home heating oil business and you are out early in the morning delivering oil to buildings and homes, you want to be out early so you can avoid traffic but you can’t collect from anyone because its mostly landlords, so you take all payments over the phone after delivery is made.
5 Types of Different payment types you will hear when running a route business.
If you are buying a route and will start managing your new customers here below are 5 of the payment options you could select from...
C.O.D is known as cash on delivery, this means no money no service! It is the most common one used in business nowadays, and this option can be used in all types of businesses, here are 3 examples that may require C.O.D…
Types of businesses that should request this payment:
Distribution/Beverage distribution: You get a random call on your business number, it is a new customer looking to buy wholesale beverages from your business, they probably got your number from a friend or neighbor, they give you the order and you deliver it, in this scenario you will collect C.O.D.
Service-based business/sewer jetting service: This requires hard labor, and might take you anywhere from 2 hours to 4 hours depending on how bad the clog is, in this service you let it know its payment after work is complete.
Delivery business/ box truck business: You have a box truck, you are offering amazing gigs, like waste removal or even moving furniture and after you finished your task you will like to be paid, this is also considered C.O.D
Conclusion paragraph: All in all, it's important to be aware of the different types of payment methods out there and how they can work for or against you. Knowing how to deal with C.O.D payments is a valuable skill that can help keep your business running smoothly. Also, you should understand just because C.O.D. spells cash on delivery doesn’t necessarily mean that it can be cash, credit card payment, or even check…Have you had any experience dealing with C.O.D payments?