Definition
Documentation proving goods or services were delivered.
Why it matters
Required for nearly every factoring transaction.
Where it shows up in a deal
POD is whatever your contract treats as evidence of acceptance: a signed bill of lading in freight, an approved timesheet in staffing, a delivery receipt in distribution, a signed acceptance certificate in project work. It is attached to each schedule of accounts, and verification usually begins by matching it to the invoice.
What it affects
- Missing or unsigned POD is the most common reason a submitted invoice is not funded that day.
- The POD must name the same entity as the invoice, or the file goes to manual review.
- Exceptions written on the POD by the receiver turn into deductions weeks later.
- Service businesses need an approval artifact, since there is nothing physical to sign for.
The common mistake
Related terms
- Bill of LadingA shipping document that lists goods, origin and destination and serves as a receipt for freight.
- VerificationThe process of confirming an invoice with the customer before funding.
- InvoiceA bill requesting payment for goods or services delivered.
- Eligible ReceivablesInvoices that meet a funder's criteria for advancing.
Questions about how proof of delivery affects your facility?
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