Payment instrumentscad
CAD
Cash Against Documents — buyer pays directly on document presentation without an LC.
CAD (Cash Against Documents) is a payment term where the buyer pays the seller (via wire or bank draft) upon presentation of a defined document set — typically Bill of Lading, invoice, and inspection certificate.
CAD is cheaper than an LC (no bank fees) but higher counterparty risk — it's used where buyer and seller know each other or where the deal value is small. Most emerging-market corridors require LC at sight; some G10-G10 refined-product trades use CAD.
Frequently asked
- What does CAD mean in oil and commodity trading?
- Cash Against Documents — buyer pays directly on document presentation without an LC.
- How do I check a counterparty that uses CAD in a deal?
- The term itself is not enough to clear or condemn a deal. What matters is the counterparty behind the pitch. Screen that name for free against OilFlow's first-party fraud-cluster corpus in seconds, and confirm identity documents and banking details independently before you transact.
See also
Seen this term in a live pitch?
These terms show up in real deal pitches — some legitimate, some not. The free check screens the counterparty behind the pitch against OilFlow's first-party-investigated fraud-cluster corpus in seconds. It queries no sanctions list.
Is the offer in your inbox real?
A written read within three business days: the broker-scam cluster corpus, a cached US sanctions pre-screen and the 235-jurisdiction tradability matrix. Not the full eight-list screen, and PEP is not screened. No account, nothing to buy.