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.

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Last updated: 13 June 2026Published: 27 January 2026

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

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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.

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Payment after delivery

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payment term

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Connected Freight Payment Systems

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