Purchasing Payment Terms

Companies selling electronic components offer many types of payment options.  New customers can be offered COD or credit card.  As relationships are built, payment plans can be established so that payments can be made on a predetermined time frame after receipt of the invoice.  If buyers have time to wait for their orders to ship, terms may be able to be established once bank and trade references are verified.  This can take several days to complete depending on references' response time.

COD = Cash On Delivery

COD CHARGE: FEDEX $10, UPS $10.50

COD TIME FRAME: FEDEX=Air shipments returned next day, UPS = All shipments returned via mail

T/T = Telegraph Transfer (Wire transfer from bank to bank)

T/T INTERNATIONAL COST = (Standard cost $35)

T/T DOMESTIC COST = (Standard cost $25)

T/T ACH (Automated Clearing House) Domestic only bank to bank.

• 1% 10, NET 30 (If paid in 10 days get 1% off bill, if not paid in 10 days, must be paid in 30 days)
• 1.5% 20, NET 30  (If paid in 20 days get 1.5% off bill, if not paid in 20 days, must be paid in 30 days)
• ½ COD, NET 30 (1/2 of bill paid COD, balance to be paid in 30 days)
• ½ PREPAY, ½ NET 30 (1/2 of bill paid before shipping, balance to be paid in 30 days)
• 2% 10, NET 30 (If paid in 10 days get 2% off bill, if not paid in 10 days, must be paid in 30 days)
• 2% 15, NET 30 (If paid in 15 days get 2% off bill, if not paid in 15 days, must be paid in 30 days)
• 2% 20, NET 30 (If paid in 20 days get 2% off bill, if not paid in 20 days, must be paid in 30 days)
• 3% 10, NET 30 (If paid in 10 days get 3% off bill, if not paid in 10 days, must be paid in 30 days)
• AMEX Credit Card
• COD-CERTIFIED FUNDS (Go to the bank and get certified check to pay upon delivery)
• COD-COMPANY CHECK (Paid on delivery with company check)
• ESCROW (3rd party manages payment transfer)
• NET 1 (Pay within 1 day of receipt)
• NET 5 (Pay within 5 day of receipt)
• NET 15 (Pay within 15 day of receipt)
• NET 20 (Pay within 20 day of receipt)
• NET 30 (Pay within 30 day of receipt)
• NET 45 (Pay within 45 day of receipt)
• NET 60 (Pay within 60 day of receipt)
• PAYPAL
• PREPAY (Pay before parts are shipped)
• PREPAY CERTIFIED  (Pay before parts are shipped with a certified check)
• SPECIAL ARRANGEMENT (Examples: Pay at time of order, hand deliver samples, etc)
• T/T IN ADVANCE (Pay at time of order placement  via wire transfer)
• T/T UPON RECEIPT (Pay via wire transfer when parts are received - Net 1)
• VISA/MASTERCARD Credit Card

Buyers can use the above guide as to consider all options when placing orders from their electronic components supplier.