Which term describes payment that is required at the point of delivery?

• A. Net 30.
• B. Ex Works.
• C. Free on Board.
• D. Cash on Delivery.

Answer: (D)

Payment timing in trade terms: Cash on Delivery is the term for payment required at the point of delivery. In this arrangement, the buyer pays when the goods are delivered or handed to the carrier, and only then are the goods released to the buyer. This ensures the seller receives payment immediately at delivery and reduces credit risk. By contrast, Net 30 means payment is due 30 days after the invoice date, so payment isn’t at delivery. Ex Works describes a minimal seller obligation with the buyer taking most costs and risks from the seller’s premises, and Free on Board concerns shipping responsibilities and risk transfer, not the timing of payment. So Cash on Delivery best fits the idea of paying at delivery.