Cash in Advance (CIA)

Tags: Glossary

A payment method where the buyer pays for goods before they are shipped.

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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.

What is Cash in Advance (CIA)?

Cash in Advance (CIA) is a payment term used in international trade and shipping, which refers to a method of payment where the buyer pays for the goods in full before the goods are shipped or delivered. 


Under a CIA payment arrangement, the seller will request payment from the buyer before the goods are shipped. The payment can be made via wire transfer, credit card, or any other agreed-upon method of payment. Once the payment is received and verified by the seller, they will proceed to ship the goods to the buyer. 


The advantage of using a CIA payment method is that the seller is guaranteed payment before shipping the goods, which can help reduce the risk of non-payment. However, this payment method can be less attractive to buyers, as they are required to pay for the goods upfront and may not have the same level of protection as they would with other payment methods, such as a letter of credit. 

Related Glossary terms

Cash Against Documents (CAD)

Cash on Delivery (COD)

Cash with Order (CWO)

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