Get to know the vital terms of Logistics and Supply Chain Management.
Cash with Order, or CWO, is a credit term in which the buyer makes cash payments while he places his order. In this contract, an assurance is built that the seller gets his money before the order fulfillment process or shipment processes can begin.
Upfront Payment: The buyer pays on order placement to ensure that the seller is paid up before processing the shipment.
The Seller’s Risk is reduced: As cash is paid up-front to the seller, the risk of non-payment is highly diminished especially in huge or even international transactions.
Faster Processing: CWO transactions help speed up the fulfillment process since payment is already done and hence avoid all possible delays associated with invoicing and credit terms.
Protection to the Seller: CWO offers instant financial security protection to the seller in initial phases or business communications especially if complemented by new or less-established business relationships.
No Credit Checks: Buyers who use CWO do not have to undergo credit checks, which saves time on transactions.
To put it simply, Cash with Order (CWO) is a very simple form of payment arrangement in logistics where the buyer makes his payment upfront, providing real security to the seller as well as the smoothness of the transaction.