Cash Against Documents (CAD)

Cash Against Documents (CAD) is a payment method where the buyer receives shipping and title documents only after paying for the goods. This ensures the seller gets paid before the buyer takes possession of the goods.

In CAD transactions, the seller ships the goods and sends the documents to the buyer’s bank. The bank releases the documents to the buyer upon payment. This method is common in international trade, involving entities like exporters, importers, and banks.

Examples of documents involved include the bill of lading, commercial invoice, and certificate of origin.