What is CAD?

CAD stands for Cash Against Documents, a payment method in international trade. It involves payment of cash against shipping documents.

Under CAD, an importer agrees to pay the exporter once they receive the necessary shipping documents, such as the bill of lading and commercial invoice. This agreement ensures that the importer has received the goods before making payment and allows the exporter to receive payment quickly. Understanding CAD is important for businesses involved in international trade and payment terms. The abbreviation CAD is often used in trade documents and discussions.