COD payment terms

[Salma]

There are A LOT of experienced people on this site so there is no better place to turn for advice.

What is the safest way to do COD? I am referring to a carrier-load broker relationship.

What has your experience been? What is the best method of payment (next-day courier, direct deposit to bank account, etc.)? WHEN to be paid - before/after delivery?

Advice from all is greatly appreciated.
Thanks!

 

[loaders]

Cash on delivery, in it's purest sense, means exactly that - give me the cash or cheque and I give you the freight. Alot though, depends on your relationship with the consignee. If you have a degree of trust, a cheque or money transfer mailed or sent out that day would be acceptable. If you don't feel comfortable with the consignee, ask for a certified cheque or money order. What we do as a broker in a COD situation, is to have the delivering driver pick-up the cheque when the shipment is delivered. Some larger carriers who have greater exposure to COD shipments usually, and rightfully, charge a service fee to do this. If you have a COD shipment and you don't have any past experience with the consignee, perhaps you could ask for credit card payment. That would eliminate the carrier from having to pick it up, hold on to it and then mail you the cheque.

 

[Salma]

Thank-you loaders for your help!