GlossaryEN1 min readUpdated: Jun 16, 2026

Cash Against Documents (CAD)

Cash Against Documents (CAD) is a documentary collection method in international trade: the exporter presents shipping documents—typically a bill of lading, sea waybill, or air waybill—to their bank, which forwards them to the importer's bank for release only upon full payment.

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Last updated: 16 June 2026Published: 19 June 2025

Source: https://iccwbo.org/business-solutions/documentary-instruments/collections/

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Definition & Explanation

Cash Against Documents (CAD) is a documentary collection method in international trade: the exporter presents shipping documents—typically a bill of lading, sea waybill, or air waybill—to their bank, which forwards them to the importer's bank for release only upon full payment. Since the buyer cannot take delivery without those documents, the exporter retains control of the goods until payment is confirmed. CAD offers less protection than a documentary letter of credit, because banks handle documents without guaranteeing the buyer's ability to pay; it is, however, considerably safer than open account terms. The method suits trade relationships of moderate trust and is governed internationally by the ICC Uniform Rules for Collections (URC 522). In practice, the freight forwarder coordinates document preparation and dispatch between shipper and bank. Not to be confused with Cash Against Goods (CAG), where payment occurs at the physical point of handover.

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