Cash Against Documents (CAD) is one of several payment options in international trade. It’s safer than proforma invoices while still being simple and easy.
What is Cash Against Documents?
Cash Against Documents is a way to pay for imports. This form of payment is also called import collection and is a relatively simple payment procedure. Through CAD, the payment is made between the banks of the seller and buyer.
How does CAD work?
When importing, the seller and buyer can agree to pay through CAD. The seller then sends bank invoices, customs documents and other documents to the bank of the buyer. When everything has been received, the customer gives the bank the green light to pay the invoices.
The advantage of CAD is that the rules of the International Chamber of Commerce regulate the procedure. By having all documents go through a bank as a middle man, a layer of safety is also added to the transaction, compared to paying everything in advance.
CAD, however, is not as safe as a letter of credit because the bank only acts as a middle man, not as a guarantee.
PostNord and CAD
When importing and exporting, the bank manages your CAD. Our job is to ensure that the delivery gets to its destination. In our service Skicka Direkt Business you can easily send parcels and track parcels to Sweden and abroad. You can also generate electronic invoice documents and sign waybills. You get a complete overview of all deliveries in one place.
Want to read more similar articles? See our Customs and E-commerce pages.
