What is CAD?

What is CAD (Cash Against Documents)?

Cash Against Documents is a payment agreement for international transactions between a shipper (exporter) and a buyer (importer) of exported goods. CAD uses neutral intermediaries, like a bank or financial institution, to exchange shipping documentation and payment for goods. There a couple different forms of CAD, including:


How Much Does Invoice Factoring Cost?

When partnering with a factoring company, you are entering into a mutually beneficial relationship intended to create success for both parties. You sell your invoices to receive dependable cash quickly and the factoring company charges a per-invoice factoring fee called the factoring rate. As the primary cost to factoring, you should fully understand what a factoring rate is and how it’s determined.

What Determines A Factoring Rate

Generally speaking, a factoring fee structure is influenced by the following:


How is Factoring Different from Asset-Based Lending?

The factoring of accounts receivable and asset-based lending are sometimes confused as one and the same. However, they are two very different forms of financing.

While factoring is asset-based, it is structured differently from asset-based lending, providing different risks, costs and benefits to the customer.

What follows is an explanation of factoring and asset-based lending, and what makes these two financing models different from each other.


The Difference Between Recourse and Non-Recourse Factoring

There are multiple benefits to factoring your invoices, most important being that factoring helps you increase your cash flow for things like payroll, operating expenses, taking on new business and more. Additionally, a factoring company will provide back-office support by managing your collections on any invoices you've submitted for factoring. But what happens if a customer's client (called a debtor) does not pay one of those invoices?

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