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COD vs. Cash in Advance

Consider requiring customers to pay C.O.D. on small orders and cash in advance on large or custom orders.  This may be an effective way to deal with new customers, new companies and any company considered by a creditor company to be a substandard credit risk.  A creditor may even offer to consider the customer for open account terms if the company successfully purchases on COD or Cash in Advance terms for a period of time.

© 2011 by Michael C. Dennis.  All Rights Reserved.