Glossary
Cash Against Documents (CAD)
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The number of individual items contained within a case.
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What does Cash Against Documents (CAD) mean?
Cash Against Documents (CAD) is a payment term used in international trade and shipping. It is a method of payment where the buyer pays the seller for goods by exchanging documents rather than sending cash directly.
Under a CAD transaction, the seller ships the goods to the buyer and provides the necessary shipping and payment documents to their bank. The bank then sends these documents to the buyer’s bank and requests payment for the goods. Once the buyer’s bank receives the payment, it releases the shipping documents to the buyer, allowing them to take possession of the goods.
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