When a supplier doesn’t want to accept the credit terms provided by a customer for an order placed with the supplier, he is required to send the formal notice of COD or Cash-On-Delivery terms to the customer in order to negotiate the payment terms and to verify that the customer and the supplier are on the same page.
Brief description of notice of COD terms:
It is very common in the business and trading world especially with online shopping that when a customer places an order with the supplier, he asks the supplier to deliver the items or order to him but he will make the payment later most commonly, in installments. This is a simple process of asking the supplier to deliver the order on credit. Suppliers accept this kind of order all the times as they can make more money as the interest on the credit but sometimes, a supplier isn’t in situation to accept the order on credit. When this happens, he will send a notice of COD terms to the customer. In this notice, the supplier will inform the customer that he can’t make the delivery on credit and as a substitute; the customer is welcome to make the payment on delivery or COD. With this offer, the supplier provides a list of terms and conditions of the COD that the customer needs to agree with. These terms can be of any type and this mainly depends on how the supplier wants to finalize the deal.
Importance of notice of COD terms:
It is not very complicated for you to understand that if a customer and supplier can’t agree on mutual terms, they can’t conduct the business together. In order to work together, one of them is required to make an offer and the other one is supposed to either accept it or negotiate the terms. The same thing happens when a customer orders some items and asks the supplier to make the order on credit (in simple words, he wants the supplier to agree that he will pay for the items later). If the supplier doesn’t want to accept this situation, he send the notice of COD terms to the customer and ask him to either agree with the terms or the order will be cancelled by the supplier.
The key elements you need to mention in the notice of COD terms:
There are many things and elements that a supplier is required to mention in the notice of COD terms but mostly, these elements depend on each supplier and the way he wants to conduct his business. The notification to the customer about the supplier not wanting to make the order on credit is most important element in this notice. The writer also required to include the details of order in the notice that the customer placed earlier. After that, the key element is the list of COD terms that the supplier wants to send to the customer in order to ask him to agree with the terms or contact the supplier to negotiate them.
Here is preview of a Free Fillable Formal Notice to Customer For COD Terms to assist you,
Here is download link for this Formal Notice to Customer For COD Terms,