Due upon receipt

What is Due Upon Receipt?

Due upon receipt is a payment term commonly used in business transactions. It means that payment is required immediately upon delivery of goods or services. This term is often used in invoices to indicate that payment is expected promptly.

Using due upon receipt as a payment term can be beneficial for businesses, as it can help ensure timely payment. However, this term also places a burden on the buyer to pay quickly, which may not always be feasible or desirable.

For example, a small business might use the due upon receipt payment term when selling a product to a new customer to establish a positive payment history. Alternatively, a larger company might use this term when working with a supplier to ensure timely delivery of goods.

Overall, due upon receipt is a useful payment term for businesses looking to ensure prompt payment, but it should be used judiciously and with consideration for the circumstances of the transaction.

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