Payment is the major point in business dealings. The seller and the buyer doing the payment transaction. There are various ways of payment. I have written about the quotation and price fixation methods of products. All of the dealings become successful 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 the buyer.
In the modern age, the online banking system is doing this payment settlement job. 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 clear dealing methods. There are different payment terms that are used for these dealings.
Types of Payments In Business
Payment and its terms and conditions should be in written form between the buyer and seller. Otherwise, it can make some difficulties if any miss understanding is happening. Businessman follows some payment methods during dealings. Such are-
In the spot cash system, the buyer gives the payment instantly when he receives the goods or products. Spot cash prefers hand-to-hand cash transactions.
If the buyer gives the payment within a short time after sending goods challan.
Net cash is that type of payment system where payment is fixed after reducing commission and other expenses. Where it refers to the actual cost of the goods.
Cash With Order (C.W.O):
If the buyer sends money during goods order then it defines as cash with order. Buyer gives order with money. Here, the trust factor is important to consider. If the seller does not supply the products after receiving the money it will be harmful to the customer. As a result, the buyer must take information about the seller before setting an order in cash with the order payment method.
Cash on Delivery:
If the buyer gives payment during goods receiving then it refers to cash on delivery. In this system, the buyer completed his payment after receiving the products. For this reason, this system gets popularity to the customer.
Sometimes buyer gives payment at a time or with some installment after receiving the goods that are called a deferred payment system. It is the most accepted payment system.
Bill of Lading:
In this billing system, all the information about the goods is enlisted. In most cases, bill of lading (BL) is popular to the export business-oriented businessman.
Indeed, there are lots of payment systems of business. Therefore, the payment status depends on the size of the payment. During payment, the seller should give the vat and another excise duty of that’s country. So, it is essential to take clearance of that’s country.
Finally, take a decision by which method you will complete your deal. Always give thanks after receiving the payment.
4 thoughts on “Types of Payments In Business”
its help me a lot.
What is the difference between spot cash and cash on delivery. Please can anyone explain it
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