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 8 sanctions lists plus PEP and OilFlow's first-party cluster corpus in seconds, or order the full 7-step dossier for $25, and confirm identity documents and banking details independently before you transact.

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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.

Related: LC, DLC.

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 8 sanctions lists plus PEP and OilFlow's first-party cluster corpus in seconds, or order the full 7-step dossier for $25, and confirm identity documents and banking details independently before you transact.