Payment Types || Important Payment Terms And Its Uses In Business Dealings

Payment is the major points in business dealings. The payment is done between the seller and the buyer. This payment is done in various ways. I have written about the quotation and price fixation methods of products. All of the dealings become success by a payment. When a manufacturer gets his or her payment he or she becomes very happy. He becomes interested to deal more with that’s buyer.

In the modern age, most of the payment is done in online banking system. So, it becomes easy to get the payment within a short time. When a seller deals with a domestic or foreign buyer he or she should maintain a clear dealing methods. Different payment terms are used for these dealings.

Payments types: Business man follows some payment methods during dealings. They are-

  1. Spot Cash: If the buyer gives the payment during goods receiving then this dealing is called spot cash. Cash is given in hand to hand.
  2. Prompt Cash: If the buyer gives the payment within short time after sending goods challan.
  3. Net Cash: If the payment fixed after reducing commission and other expenses then it is called net cash. It is the actual cost of the goods.
  4. Cash With Order (C.W.O): If the buyer sends money during goods order then it is called cash with order. Buyer gives order with money.
  5. Cash on Delivery: If the buyer gives payment during goods receiving then it is called cash on delivery.
  6. Deferred payment: Sometimes buyer gives payment at a time or with some installment after receiving the goods that is called deferred payment system. Most the dealing is done in this process.
  7. Bill of Lading: In this bill all the information about the goods are enlisted.

So, there are lots of payment systems of business. The payment status depends on the size of payment. During payment, seller should give the vat and other excise duty of that’s country. It is need to take clearance of that’s country.

So, take decision by which method you will complete your deal. Always give thanks after receive the payment.

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