GlossaryEN1 min readUpdated: Jun 13, 2026

Payment after delivery

Payment after delivery occurs once the supplier has completed the shipment and the buyer has received the goods or accepted them upon inspection.

Quick Answer

Last updated: 13 June 2026Published: 27 January 2026

Source: https://en.wikipedia.org/wiki/Cash_on_delivery

Category

Logistics Concept

Reading time

1 min

Words

Mentioned in

–

Definition & Explanation

Payment after delivery occurs once the supplier has completed the shipment and the buyer has received the goods or accepted them upon inspection. The shipper provides proof of delivery through transport documents (airway bill, bill of lading, delivery note), and only then does the buyer's payment obligation become due. This structure is common in international trade and substantially reduces the buyer's risk by ensuring they have possession or verified receipt before settling payment. Unlike advance payment or documentary credit arrangements, settlement follows the physical delivery event.

Next steps

Tools that match this term

Check sea freight costEstimate FCL/LCL costOpen Find HS codeDetermine the tariff number for customsOpen Calculate customs valueWork out import duties and customs valueOpen Compare IncotermsClarify duties, cost and riskOpen

Related Terms

You might also be interested in these terms

Payment clause; payment plan

A payment clause is a contractual provision specifying when and how payment must be made, including due date, method of payment, c…

Learn more

payment clause

During the payment process between buyer and seller, the payment clause specifies when, in what amount, and by which method paymen…

Learn more

payment term

Freight forwarders and shippers agree on payment terms that specify when invoices are due, the payment periods (e.g. net 30, net 6…

Learn more

Payment clause in a letter of credit

The payment clause within a letter of credit (L/C) defines precisely when and how the beneficiary – typically the exporter – recei…

Learn more

Export Payment Risk Management Systems

Once an exporter ships goods on open account or deferred payment terms, the risk of non-payment or late settlement by the overseas…

Learn more

Connected Freight Payment Systems

Connected freight payment systems typically reduce the time between service delivery and payment receipt from weeks to days or hou…

Learn more

Logistics knowledge straight to your inbox

Weekly: Top news, industry facts and insights from the world of logistics – free.

Payment after delivery

Next steps

Related Terms

Payment clause; payment plan

payment clause

payment term

Payment clause in a letter of credit

Export Payment Risk Management Systems

Connected Freight Payment Systems

Logistics knowledge straight to your inbox

Community Questions & Answers