Payment instruments
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.
See also