[{"data":1,"prerenderedAt":462},["ShallowReactive",2],{"document-notice-of-cod-terms-D267":3},{"document":4,"label":22,"preview":11,"thumb":23,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":24,"breadcrumb":28,"related":36,"customDescModule":172,"customdescription":6,"mdFm":173,"mdProseHtml":461},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":21},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: NOTICE OF C.O.D. TERMS Dear [Contact name], We are in receipt of your order dated [Date] and your request for credit terms. While we do want to accept your order, we regret we cannot ship on credit terms at the present time",null,"Notice of COD Terms","1",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/notice-of-cod-terms-D267.png","https://templates.business-in-a-box.com/imgs/250px/267.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#267.xml",{"title":15,"description":6},"notice of cod terms",[17,20],{"label":18,"url":19},"Credit & Collection","/templates/credit-collection/",{"label":18,"url":19},"notice cod terms","Notice of COD Terms Template","https://templates.business-in-a-box.com/imgs/400px/267.png",[25,17,20],{"label":26,"url":27},"Templates","/templates/",[29,30,33],{"label":26,"url":27},{"label":31,"url":32},"Finance & Accounting","/templates/finance-accounting/",{"label":34,"url":35},"Credit Management","/templates/credit-management/",[37,41,45,49,53,57,61,65,69,73,77,81,85,101,115,127,142,158],{"label":38,"url":39,"thumb":40,"extension":10},"Website Terms and Conditions","/template/website-terms-and-conditions-D13193","https://templates.business-in-a-box.com/imgs/250px/13193.png",{"label":42,"url":43,"thumb":44,"extension":10},"Affiliate Program Terms and Conditions","/template/affiliate-program-terms-and-conditions-D13597","https://templates.business-in-a-box.com/imgs/250px/13597.png",{"label":46,"url":47,"thumb":48,"extension":10},"Conversion of Account to COD","/template/conversion-of-account-to-cod-D201","https://templates.business-in-a-box.com/imgs/250px/201.png",{"label":50,"url":51,"thumb":52,"extension":10},"Terms And Conditions","/template/terms-and-conditions-D12667","https://templates.business-in-a-box.com/imgs/250px/12667.png",{"label":54,"url":55,"thumb":56,"extension":10},"Conversion of Account to COD 2","/template/conversion-of-account-to-cod-2-D200","https://templates.business-in-a-box.com/imgs/250px/200.png",{"label":58,"url":59,"thumb":60,"extension":10},"Acknowledgment of Modified Terms","/template/acknowledgment-of-modified-terms-D846","https://templates.business-in-a-box.com/imgs/250px/846.png",{"label":62,"url":63,"thumb":64,"extension":10},"Contract Terms Checklist","/template/contract-terms-checklist-D13260","https://templates.business-in-a-box.com/imgs/250px/13260.png",{"label":66,"url":67,"thumb":68,"extension":10},"Freeware License Terms","/template/freeware-license-terms-D834","https://templates.business-in-a-box.com/imgs/250px/834.png",{"label":70,"url":71,"thumb":72,"extension":10},"Terms of Service Agreement","/template/terms-of-service-agreement-D920","https://templates.business-in-a-box.com/imgs/250px/920.png",{"label":74,"url":75,"thumb":76,"extension":10},"Charge Account Terms and Conditions","/template/charge-account-terms-and-conditions-D249","https://templates.business-in-a-box.com/imgs/250px/249.png",{"label":78,"url":79,"thumb":80,"extension":10},"Checklist Contract Terms and Provisions","/template/checklist-contract-terms-and-provisions-D863","https://templates.business-in-a-box.com/imgs/250px/863.png",{"label":82,"url":83,"thumb":84,"extension":10},"Letter Confirming Employment Terms","/template/letter-confirming-employment-terms-D589","https://templates.business-in-a-box.com/imgs/250px/589.png",{"description":86,"descriptionCustom":6,"label":87,"pages":8,"size":88,"extension":10,"preview":89,"thumb":90,"svgFrame":91,"seoMetadata":92,"parents":93,"keywords":99,"url":100},"Invoice Company: Complete Address: ______________________________________________________ Phone:_________________ Fax: ________________ Email: _____________________ INVOICE #: _____________ DATE: ________________ Bill to: Address: _______________________________________ City: __________________________________________ State/Province: ___________ Zip/postal code__________ Country: ________________ Phone: _________________ Fax: __________________ Email: _________________________________________ Ship To:","Commercial Sales Invoice",42,"https://templates.business-in-a-box.com/imgs/1000px/sales-invoice-D383.png","https://templates.business-in-a-box.com/imgs/250px/383.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#383.xml",{"title":6,"description":6},[94,96],{"label":31,"url":95},"finance-accounting",{"label":97,"url":98},"Invoices & Receipts","invoice-receipt","sales invoice","/template/sales-invoice-D383",{"description":102,"descriptionCustom":6,"label":103,"pages":8,"size":9,"extension":10,"preview":104,"thumb":105,"svgFrame":106,"seoMetadata":107,"parents":109,"keywords":113,"url":114},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: Withdrawal of Credit on Past Due Account Dear [Contact name], Your file was just placed on my desk for disposition. It seems that your account is seriously past due. We have valued your business for many years and can only hope that this lack of payment is only an error or an oversight. If you have mailed your check, thank you","Withdrawal of Credit on Past Due Account","https://templates.business-in-a-box.com/imgs/1000px/withdrawal-of-credit-on-past-due-account-D279.png","https://templates.business-in-a-box.com/imgs/250px/279.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#279.xml",{"title":108,"description":6},"withdrawal of credit on past due account",[110,112],{"label":18,"url":111},"credit-collection",{"label":18,"url":111},"withdrawal credit past due account","/template/withdrawal-of-credit-on-past-due-account-D279",{"description":116,"descriptionCustom":6,"label":117,"pages":8,"size":9,"extension":10,"preview":118,"thumb":119,"svgFrame":120,"seoMetadata":121,"parents":123,"keywords":122,"url":126},"BUSINESS CREDIT APPLICATION Name/Address Last: First: Middle Initial: Title Company Name: Tax I.D. Number Address: City: State/Province: ZIP/Postal Code: Phone: Company Information Type of Business: In Business Since: Legal Form Under Which Business Operates: State/Province/Country: Corporation Partnership Proprietorship Other If Division/Subsidiary, Name of Parent Company: In Business Since: Name of Company Principal Responsible for Business Transactions: Title: Address: City: State/Province: ZIP: Phone: Name of Company Principal Responsible for Business Transactions: Title: Address: City: State/Province: ZIP: Phone: ","Business Credit Application","https://templates.business-in-a-box.com/imgs/1000px/business-credit-application-D247.png","https://templates.business-in-a-box.com/imgs/250px/247.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#247.xml",{"title":122,"description":6},"business credit application",[124,125],{"label":18,"url":111},{"label":18,"url":111},"/template/business-credit-application-D247",{"description":128,"descriptionCustom":6,"label":129,"pages":8,"size":9,"extension":10,"preview":130,"thumb":131,"svgFrame":132,"seoMetadata":133,"parents":135,"keywords":140,"url":141},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: demand for extension of payment date Dear [Contact name], This will acknowledge our telephone conversation of this date. As was stated in our letter dated [Date], we should be receiving our financing by [Date].","Demand for Extension of Payment Date","https://templates.business-in-a-box.com/imgs/1000px/demand-for-extension-of-payment-date-D444.png","https://templates.business-in-a-box.com/imgs/250px/444.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#444.xml",{"title":134,"description":6},"demand for extension of payment date",[136,137],{"label":31,"url":95},{"label":138,"url":139},"Administration","business-administration","demand for extension payment date","/template/demand-for-extension-of-payment-date-D444",{"description":143,"descriptionCustom":6,"label":144,"pages":8,"size":145,"extension":10,"preview":146,"thumb":147,"svgFrame":148,"seoMetadata":149,"parents":150,"keywords":156,"url":157},"RECEIPT IN FULL ","Receipt",28,"https://templates.business-in-a-box.com/imgs/1000px/receipt-D395.png","https://templates.business-in-a-box.com/imgs/250px/395.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#395.xml",{"title":6,"description":6},[151,152,155],{"label":31,"url":95},{"label":153,"url":154},"Business Loans","business-loan",{"label":31,"url":95},"payment receipt","/template/payment-receipt-D395",{"description":159,"descriptionCustom":6,"label":160,"pages":8,"size":9,"extension":10,"preview":161,"thumb":162,"svgFrame":163,"seoMetadata":164,"parents":166,"keywords":165,"url":171},"Payment Plan Agreement By this contract, [BORROWER'S NAME] agrees to pay for the services rendered by [NAME OF THE LENDER], hereafter known as \"Lender,\" by the following schedule in exchange for [SPECIFY]. By this agreement, it is agreed that a payment of [SPECIFY AMOUNT] will be surrendered to the Lender every [WEEK/MONTH], for the next [SPECIFY THE NUMBER OF WEEKS/MONTHS] until the total of the payment required, which is [SPECIFY] has been delivered. The first payment will start [SPECIFY DATE] and will end [SPECIFY DATE]. The payment schedule will take the following form:","Payment Plan Agreement","https://templates.business-in-a-box.com/imgs/1000px/payment-plan-agreement-D12663.png","https://templates.business-in-a-box.com/imgs/250px/12663.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12663.xml",{"title":165,"description":6},"payment plan agreement",[167,170],{"label":168,"url":169},"Legal Agreements","business-legal-agreements",{"label":168,"url":169},"/template/payment-plan-agreement-D12663",false,{"seo":174,"reviewer":186,"legal_disclaimer":172,"quick_facts":190,"at_a_glance":192,"personas":196,"variants":217,"glossary":243,"clauses":274,"how_to_fill":320,"common_mistakes":351,"faqs":368,"industries":393,"comparisons":410,"diy_vs_pro":425,"related_template_ids_curated":438,"schema":449,"classification":451},{"meta_title":175,"meta_description":176,"primary_keyword":177,"secondary_keywords":178},"Notice of COD Terms Template | Free Word Download","Free Notice of COD Terms template to inform customers of cash-on-delivery payment requirements. Download in Word, edit online, or export as PDF in minutes.","notice of cod terms template",[179,180,181,182,183,184,185],"cod terms letter template","cash on delivery notice template","notice of payment terms letter","cod payment terms template word","change to cod terms letter","business payment notice template","cod terms notification free download",{"name":187,"credential":188,"reviewed_date":189},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":191,"legal_review_recommended":172,"signature_required":172},"easy",{"what_it_is":193,"when_you_need_it":194,"whats_inside":195},"A Notice of COD Terms is a formal business letter a supplier or vendor sends to a customer to communicate that future orders must be paid cash-on-delivery rather than on credit. This free Word download gives you a ready-to-edit template you can personalize with your company details, the effective date, and any accepted payment methods, then export as PDF and deliver in minutes.\n","Use it when a customer has exceeded their credit limit, accumulated overdue balances, or when your company policy requires COD terms for new or high-risk accounts. It is also appropriate when a formerly credit-approved customer's financial position has deteriorated and you need to document the change in writing.\n","Sender and recipient identification, a clear statement of the COD requirement and its effective date, accepted payment methods, instructions for placing future orders, and a professional closing that preserves the business relationship while leaving no ambiguity about the new terms.\n",[197,201,205,209,213],{"title":198,"use_case":199,"icon_asset_id":200},"Accounts receivable managers","Notifying customers with overdue balances that credit terms are suspended","persona-ar-manager",{"title":202,"use_case":203,"icon_asset_id":204},"Small business owners","Documenting a switch to COD for a customer who has missed multiple payments","persona-small-business-owner",{"title":206,"use_case":207,"icon_asset_id":208},"Wholesale distributors","Communicating COD requirements to retail buyers with deteriorating credit","persona-wholesaler",{"title":210,"use_case":211,"icon_asset_id":212},"Operations managers","Standardizing how the company notifies customers of payment policy changes","persona-operations-manager",{"title":214,"use_case":215,"icon_asset_id":216},"Credit controllers","Creating a paper trail before escalating to collections or suspending supply","persona-credit-controller",[218,221,225,228,232,235,239],{"situation":219,"recommended_template":7,"slug":220},"Switching an existing credit customer to COD due to late payments","notice-of-cod-terms-D267",{"situation":222,"recommended_template":223,"slug":224},"Formally suspending credit and demanding payment of outstanding balance","Credit Hold Notice","notice-of-credit-limit-D269",{"situation":226,"recommended_template":227,"slug":224},"Notifying a customer that their credit limit has been reduced","Credit Limit Reduction Letter",{"situation":229,"recommended_template":230,"slug":231},"Demanding payment on a past-due invoice before resuming supply","Past Due Invoice Notice","apology-for-accounting-errors-and-past-due-notice-D241",{"situation":233,"recommended_template":160,"slug":234},"Offering revised payment terms to a customer in financial difficulty","payment-plan-agreement-D12663",{"situation":236,"recommended_template":237,"slug":238},"Terminating the supply relationship due to non-payment","Notice of Account Termination","notice-of-termination-D517",{"situation":240,"recommended_template":241,"slug":242},"Confirming restored credit terms after a COD period","Credit Terms Reinstatement Letter","credit-information-cover-letter-D258",[244,247,250,253,256,259,262,265,268,271],{"term":245,"definition":246},"COD (Cash on Delivery)","A payment arrangement requiring the buyer to pay for goods at the time of delivery, before taking possession.",{"term":248,"definition":249},"Credit Terms","Agreed conditions under which a supplier extends trade credit, specifying the payment period — e.g., Net 30 or Net 60 from invoice date.",{"term":251,"definition":252},"Effective Date","The specific calendar date from which the new COD requirement applies to the customer's orders.",{"term":254,"definition":255},"Trade Credit","A supplier's agreement to allow a buyer to receive goods or services now and pay later, typically within 30 to 90 days.",{"term":257,"definition":258},"Overdue Balance","An unpaid invoice amount that has passed its agreed due date without receipt of payment.",{"term":260,"definition":261},"Credit Hold","A temporary suspension of a customer's ability to place new orders on credit, usually triggered by overdue balances or a deterioration in creditworthiness.",{"term":263,"definition":264},"Accounts Receivable","Money owed to a business by its customers for goods or services already delivered but not yet paid for.",{"term":266,"definition":267},"Payment in Advance (PIA)","A stricter payment condition than COD, requiring the buyer to pay before goods are dispatched rather than upon delivery.",{"term":269,"definition":270},"Net Terms","Credit terms specifying the number of days — typically 15, 30, or 60 — within which a buyer must pay an invoice in full.",{"term":272,"definition":273},"Certified Funds","Payment forms guaranteed by a financial institution — such as a cashier's check, money order, or bank transfer — often required under COD arrangements.",[275,280,285,290,295,300,305,310,315],{"name":276,"plain_english":277,"sample_language":278,"common_mistake":279},"Sender and recipient identification","Opens the letter by identifying your company and the customer, including full mailing addresses and the date of the notice.","[YOUR COMPANY NAME] | [ADDRESS] | [CITY, STATE, ZIP] | [DATE]\n\nAttn: [CONTACT NAME], [TITLE]\n[CUSTOMER COMPANY NAME] | [ADDRESS]","Addressing the letter to a general inbox or department rather than a named accounts-payable contact. A misdirected notice may never reach the person with authority to act on it.",{"name":281,"plain_english":282,"sample_language":283,"common_mistake":284},"Subject line","A brief, unambiguous heading that tells the reader exactly what the letter is about before they read a single sentence.","Re: Change in Payment Terms — Cash on Delivery Effective [DATE]","Using a vague subject line like 'Account Update.' A specific subject line ensures the letter is routed to the right person and is harder to overlook or dismiss.",{"name":286,"plain_english":287,"sample_language":288,"common_mistake":289},"Opening statement of the COD requirement","States clearly and professionally that the customer's account is being moved to COD terms, and gives the specific effective date.","Please be advised that effective [EFFECTIVE DATE], all orders from [CUSTOMER COMPANY NAME] must be paid cash on delivery. Credit terms previously extended to your account are suspended as of that date.","Burying the COD requirement in the middle of a paragraph. The requirement must be stated in the first or second sentence so there is no confusion about the letter's purpose.",{"name":291,"plain_english":292,"sample_language":293,"common_mistake":294},"Reason for the change (brief)","Provides a concise, professional explanation for the change — typically referencing the outstanding balance or account status — without unnecessary detail or accusatory language.","This change reflects the current status of your account, which carries an outstanding balance of $[AMOUNT] as of [DATE], including [NUMBER] invoice(s) past due by more than [DAYS] days.","Including an overly detailed recitation of every missed payment. A single factual statement of the outstanding balance is sufficient and reduces the risk of a dispute over specifics.",{"name":296,"plain_english":297,"sample_language":298,"common_mistake":299},"Accepted payment methods","Lists exactly which forms of payment will be accepted at the time of delivery, removing any ambiguity for the customer's procurement team.","Accepted forms of payment upon delivery include: certified check, money order, bank wire transfer confirmed prior to dispatch, or [PAYMENT PLATFORM] payment link. Personal or business checks will not be accepted.","Omitting this clause entirely and assuming the customer knows what COD means in your context. Different suppliers define acceptable COD payment methods differently — spelling it out prevents delivery disputes.",{"name":301,"plain_english":302,"sample_language":303,"common_mistake":304},"Instructions for placing future orders","Explains how the customer should proceed when placing their next order under the new terms, including any advance notice required for payment confirmation.","To place an order under COD terms, please contact your account representative at [CONTACT INFO] at least [X] business days before your required delivery date. For wire transfers, payment must be confirmed by [YOUR BANK] before dispatch.","Failing to provide a clear process for the next order. Without this, customers may simply stop ordering rather than adapt, resulting in lost revenue.",{"name":306,"plain_english":307,"sample_language":308,"common_mistake":309},"Outstanding balance reminder and payment request","References any existing unpaid balance and requests payment by a specific date, separate from the COD requirement going forward.","We respectfully request that the outstanding balance of $[AMOUNT] be remitted no later than [DUE DATE]. Please reference invoice number(s) [INVOICE NUMBERS] when submitting payment.","Conflating the outstanding balance with the new COD requirement. These are two separate issues — mixing them creates confusion about whether COD is a penalty for the overdue balance or a permanent policy change.",{"name":311,"plain_english":312,"sample_language":313,"common_mistake":314},"Offer to discuss and relationship preservation","Invites the customer to contact you to discuss their account, signals that the relationship remains important, and provides direct contact information.","We value our relationship with [CUSTOMER COMPANY NAME] and are committed to continuing to serve you. If you have questions about your account or wish to discuss these terms, please contact [NAME] at [PHONE / EMAIL].","Omitting this clause and ending the letter on a purely transactional note. A professional closing reduces the risk of the customer escalating the dispute or taking their business elsewhere without a conversation.",{"name":316,"plain_english":317,"sample_language":318,"common_mistake":319},"Professional closing and signature block","Closes the letter with a standard business sign-off, printed name, title, and company name.","Sincerely,\n\n[AUTHORIZED SIGNATORY NAME]\n[TITLE]\n[YOUR COMPANY NAME]\n[PHONE] | [EMAIL]","Signing from a generic department name rather than a named individual with a title. A named signatory gives the letter authority and provides the customer with a real point of contact.",[321,326,331,336,341,346],{"step":322,"title":323,"description":324,"tip":325},1,"Enter your company and customer details","Fill in your company's full legal name, address, and contact information in the header. Add the customer's legal entity name, billing address, and the name of their accounts-payable or procurement contact.","Confirm the customer's legal entity name against their original account application — mismatches can complicate enforcement if the letter becomes evidence in a collections matter.",{"step":327,"title":328,"description":329,"tip":330},2,"Set the effective date","Choose a specific calendar date on which the COD requirement takes effect. Give the customer at least 5–10 business days' notice to allow them time to arrange payment logistics before their next order.","If the customer has a standing order or recurring delivery, align the effective date to fall before the next scheduled dispatch so there is no ambiguity about which orders are affected.",{"step":332,"title":333,"description":334,"tip":335},3,"State the reason briefly and factually","Include the outstanding balance amount and the number of days overdue. Use neutral, factual language — avoid accusatory phrasing that could damage the relationship or be used against you in a dispute.","Pull the balance from your accounting system on the day you draft the letter so the figure is current and defensible.",{"step":337,"title":338,"description":339,"tip":340},4,"List the accepted payment methods","Specify exactly which payment forms you will accept at delivery — certified check, money order, bank wire, or a payment portal link. Explicitly exclude any forms you will not accept, such as personal checks.","If you use a payment platform like Stripe or PayPal, include a direct payment link in this section to reduce friction and speed up collection.",{"step":342,"title":343,"description":344,"tip":345},5,"Add the outstanding balance payment request","State the total overdue amount, list the relevant invoice numbers, and set a firm due date for settling the existing balance — separate from the COD requirement on future orders.","Set the due date for the existing balance 10–14 days from the letter date, giving the customer enough time to process payment through their AP system.",{"step":347,"title":348,"description":349,"tip":350},6,"Include your contact details and close professionally","Add a direct contact name, phone number, and email address for questions. Close with a standard business sign-off and include the signatory's full name and title.","Use the credit manager or account manager as the named contact rather than a general accounts-receivable inbox — personal contact details get faster responses.",[352,356,360,364],{"mistake":353,"why_it_matters":354,"fix":355},"No specific effective date for COD terms","Without a date, the customer can argue that COD terms have not yet formally begun and continue placing orders expecting credit. This creates delivery disputes and delays collection.","Always include a specific calendar date — e.g., 'effective June 15, 2026' — and confirm it is far enough in advance for the customer to arrange payment logistics.",{"mistake":357,"why_it_matters":358,"fix":359},"Conflating the outstanding balance with the new COD requirement","When these two issues are mixed, customers become confused about whether paying the overdue balance will restore credit terms, which may not be your intention.","Address the overdue balance in its own clause with its own due date, and state separately and clearly that COD terms apply to all future orders regardless of the balance resolution.",{"mistake":361,"why_it_matters":362,"fix":363},"Omitting the accepted payment methods","COD means different things to different suppliers. If the customer arrives at delivery with a business check and you require certified funds, the delivery cannot be completed and both parties waste time and money.","List every accepted form of payment explicitly, including any advance payment confirmation requirements for wire transfers.",{"mistake":365,"why_it_matters":366,"fix":367},"Sending the letter without a named signatory and contact","A letter signed by 'Accounts Receivable Department' gives the customer no one to call, reducing the chance of a quick resolution and making the letter feel like an automated form rather than a business decision.","Include a named individual with a title, direct phone number, and email address so the customer can respond immediately.",[369,372,375,378,381,384,387,390],{"question":370,"answer":371},"What is a Notice of COD Terms?","A Notice of COD Terms is a formal business letter a supplier sends to a customer to inform them that future orders must be paid cash on delivery rather than on previously extended credit. It states the effective date, explains the reason briefly, lists accepted payment methods, and requests settlement of any existing overdue balance. It creates a written record of the policy change and gives the customer clear instructions for continuing to do business under the new terms.\n",{"question":373,"answer":374},"When should I send a Notice of COD Terms?","Send it when a customer has accumulated overdue invoices, exceeded their credit limit, or when your credit review process flags a material deterioration in their payment behavior or financial position. It is also appropriate for new accounts that do not yet qualify for trade credit, or as a precautionary step before escalating to a formal collections process. Sending it proactively — before the situation worsens — gives you a documented paper trail and preserves the business relationship.\n",{"question":376,"answer":377},"Does a Notice of COD Terms need to be signed by both parties?","No. A Notice of COD Terms is a unilateral supplier communication, not a contract requiring counter-signature. It informs the customer of a change in your payment policy. The customer's continued placement of orders after the effective date constitutes acceptance of the new terms in most commercial contexts. That said, it is best practice for the notice to be signed by a named individual on the supplier side to give it authority.\n",{"question":379,"answer":380},"What payment methods should I specify in a COD notice?","Common COD payment methods include certified check, cashier's check, money order, bank wire transfer confirmed before dispatch, and online payment platform links (Stripe, PayPal, or similar). Clearly exclude any forms you will not accept — most suppliers exclude personal and business checks under COD terms because they carry non-payment risk. Specifying payment methods upfront prevents delivery disputes and delays.\n",{"question":382,"answer":383},"Can I send a Notice of COD Terms via email?","Yes. Email delivery is generally acceptable for business notices and creates a time-stamped delivery record. For customers with significant outstanding balances or where the relationship is contentious, consider sending both an email and a physical letter via certified mail to establish proof of delivery. Always CC your account manager and retain a copy in the customer's file.\n",{"question":385,"answer":386},"Will switching a customer to COD damage the business relationship?","Not necessarily. A professionally written notice that explains the reason factually, offers a clear path for continued ordering, and invites the customer to discuss their account minimizes relationship damage. Many customers accept COD terms as a reasonable response to late payments. The letter's tone matters: matter-of-fact and solution-oriented language is far less likely to provoke a negative reaction than punitive or accusatory phrasing.\n",{"question":388,"answer":389},"What is the difference between COD terms and payment in advance?","COD requires payment at the moment of delivery, before the goods change hands. Payment in advance (PIA) requires the buyer to pay before the goods are even dispatched. COD is less restrictive than PIA because the customer can at least inspect the delivery before paying, but it still eliminates the supplier's credit exposure on new orders. PIA is typically reserved for customers with a history of refusing deliveries or disputing invoices after receipt.\n",{"question":391,"answer":392},"How much notice should I give before COD terms take effect?","Five to ten business days is standard for most B2B supply relationships. This gives the customer enough time to adjust their procurement process, arrange certified funds, and notify their accounts-payable team. Shorter notice periods — fewer than three business days — can be seen as punitive and may trigger a dispute or order cancellation. If the customer has a standing delivery schedule, align the effective date with their next order cycle where possible.\n",[394,398,402,406],{"industry":395,"icon_asset_id":396,"specifics":397},"Wholesale Distribution","industry-wholesale","Distributors handling high-volume, low-margin orders use COD notices to protect cash flow when a retail buyer accumulates overdue balances across multiple delivery runs.",{"industry":399,"icon_asset_id":400,"specifics":401},"Manufacturing","industry-manufacturing","Manufacturers with long production lead times use COD notices to ensure payment is secured before dispatching custom or made-to-order goods that cannot be easily resold.",{"industry":403,"icon_asset_id":404,"specifics":405},"Food and Beverage","industry-food-beverage","Perishable goods suppliers frequently switch accounts to COD when payment issues arise, since unsold stock cannot be recovered and write-offs directly erode thin margins.",{"industry":407,"icon_asset_id":408,"specifics":409},"Construction and Building Materials","industry-construction","Suppliers of lumber, fixtures, and materials use COD notices for contractors with inconsistent payment histories, particularly on projects where lien rights may be limited.",[411,414,418,422],{"vs":223,"vs_template_id":412,"summary":413},"D{CREDIT_HOLD_NOTICE_ID}","A Credit Hold Notice suspends a customer's ability to place any new orders until an overdue balance is resolved — it stops supply entirely. A Notice of COD Terms allows orders to continue but changes the payment method. Use a COD notice when you want to preserve the commercial relationship; use a credit hold when you need to stop shipments immediately.",{"vs":415,"vs_template_id":416,"summary":417},"Past Due Invoice Reminder","D{PAST_DUE_INVOICE_ID}","A past due invoice reminder requests payment on a specific overdue invoice — it is reactive and focused on a single debt. A Notice of COD Terms is forward-looking and changes the payment structure for all future orders. Most suppliers send invoice reminders first; the COD notice follows if payment is not received.",{"vs":419,"vs_template_id":420,"summary":421},"Demand Letter","D{DEMAND_LETTER_ID}","A demand letter is a formal legal notice demanding payment of a specific amount within a set deadline, often the final step before legal action. A Notice of COD Terms is a commercial communication that preserves the supply relationship and is not a legal threat. The COD notice is appropriate earlier in the collections process; the demand letter comes when payment has been refused or ignored.",{"vs":160,"vs_template_id":423,"summary":424},"D{PAYMENT_PLAN_AGREEMENT_ID}","A Payment Plan Agreement offers a structured schedule for a customer to repay an existing overdue balance in installments — it is a negotiated resolution document. A Notice of COD Terms is a unilateral change to ongoing payment policy. The two documents address different problems: the COD notice governs future orders, while a payment plan governs repayment of the existing debt.",{"use_template":426,"template_plus_review":430,"custom_drafted":434},{"best_for":427,"cost":428,"time":429},"Any supplier or business owner needing to notify a customer of COD terms quickly and professionally","Free","10–15 minutes",{"best_for":431,"cost":432,"time":433},"High-value accounts or situations where the overdue balance may lead to collections or legal escalation","$100–$300 (brief review by a credit manager or collections attorney)","1–2 hours",{"best_for":435,"cost":436,"time":437},"Complex commercial relationships involving contracts with specific payment term clauses or regulated industries","$300–$800","1–3 days",[439,440,441,442,443,234,444,445,446,439,447,448],"sales-invoice-D383","withdrawal-of-credit-on-past-due-account-D279","business-credit-application-D247","demand-for-extension-of-payment-date-D444","payment-receipt-D395","purchase-order-D1411","accounts-receivable-D308","credit-note-D13639","collection-letter-to-eliminate-disputes-D190","notice-of-overdue-payment-D223",{"emit_how_to":450,"emit_defined_term":450},true,{"primary_folder":95,"secondary_folder":452,"document_type":453,"industry":454,"business_stage":455,"tags":456,"confidence":460},"credit-management","notice","general","all-stages",[457,452,458,459],"cash-on-delivery","vendor-communication","payment-terms",0.92,"\u003Ch2>What is a Notice of COD Terms?\u003C/h2>\n\u003Cp>A \u003Cstrong>Notice of COD Terms\u003C/strong> is a formal business letter a supplier sends to a customer to communicate that future orders must be paid cash on delivery — meaning payment is required at the time goods are received, before possession is transferred. It replaces previously extended trade credit for that account, effective on a specific date stated in the letter. The notice also typically requests settlement of any existing overdue balance and provides clear instructions on accepted payment methods and how to place future orders under the new arrangement.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Extending trade credit without a clear mechanism for withdrawing it when payment behavior deteriorates is one of the most common causes of uncollected receivables in small and mid-sized businesses. Without a written Notice of COD Terms, customers can continue placing orders on credit indefinitely while their overdue balance grows — and your legal position weakens with each new shipment. A properly dated and delivered notice creates a documented record of the policy change, establishes the exact date from which COD terms apply, and removes any ambiguity that a customer might exploit in a dispute. It also signals a clear, professional escalation path: if the customer continues ordering without paying at delivery, you have written evidence supporting a credit hold, collections action, or supply suspension. This template gives you a professionally structured letter you can complete in under 15 minutes, send the same day, and file as part of the customer's account record.\u003C/p>\n",1779808966782]