Cash against documents意思

"Cash against documents" (CAD) is a term used in international trade that refers to a payment method where the buyer pays the seller's bank for the shipping documents, and the documents are released to the buyer upon payment. This method is used to ensure that the buyer pays for the goods before the seller releases the title documents, which are necessary for the buyer to take possession of the goods.

Under a CAD arrangement, the seller's bank holds the shipping documents (such as the bill of lading, commercial invoice, and certificate of origin) until the buyer pays the full amount of the purchase price. Once the payment is received, the bank releases the documents to the buyer, who can then take possession of the goods.

CAD is a common method of payment in international trade, as it provides a level of security for both the buyer and the seller. The buyer is assured that they will receive the goods once they have paid for them, while the seller is assured that they will receive payment before releasing the goods.