Okuzeka
International Trade vocabulary · Payment Methods and Letters of Credit

Cash against documents

Meaning in international trade, with examples

phraseCommon term

In international trade, cash against documents means: A payment term in which the buyer pays the bank first and only then receives the original documents needed to collect the goods.

In Turkish: vesaik mukabili ödeme, belge karşılığı ödeme

How it is used

Shortened to CAD; it means the same as D/P (documents against payment) in a documentary collection. Widely used by Turkish exporters. The risk for the exporter is that the buyer does not pay and the goods wait at the destination port.

Example sentences

  1. The payment term is cash against documents through our bank in Istanbul.

  2. On cash against documents terms, the consignee cannot take the goods before paying.

Common collocations

  • cash against documents terms
  • sell on cash against documents
  • CAD payment
  • cash against documents at sight
  • documentary collectionA payment method in which the exporter's bank sends the shipping documents to the buyer's bank, which releases them only when the buyer pays or accepts a bill of exchange.
  • payment termsThe agreed conditions for paying for goods: how much is paid, when, by what method and through which bank or document.
  • bill of ladingA document issued by the shipping line that confirms the goods were received or loaded, sets out the terms of carriage and gives the holder the right to collect the cargo.
  • open accountA payment method in which the seller ships the goods and sends the documents directly to the buyer, who pays later on an agreed date.

More terms: Payment Methods and Letters of Credit

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