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What is CAD?

We’ve put together the basics you need to know about CAD (Cash Against Documents), a common payment process for international transactions.


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:

  • Documentary Collection – Occurs when both the exporter and importer use their banks as intermediaries. The banks collect the payment and documents from the appropriate parties, exchange the documents for payment, and then provide the exporter with payment and the importer with the documents.
  • CAD Express Release – Parties use a single intermediary, such as a mutual financial institution or the exporter’s factoring company, to handle the payment and document exchange. When the goods reach their destination, the importer is provided with printed documents to help expedite the shipping and receiving process.

What are the benefits of CAD?

Using CAD for importing and exporting goods provides a safe and secure way to exchange documents and payments. By utilizing unbiased banks and/or financial institutions, the buyer can feel more confident about receiving the paperwork they need, and the shipper is less likely to have issues or disputes receiving payment. This allows the exporter the ability to extend terms in the form of transit time, while maintaining control of the shipment.

Additionally, the process is typically fast and easy and allows both the importer and exporter to get what they need quicker than if they had to wait for the full length of transit time. There is also more flexibility with payment terms and document delivery, especially if the exporter is using a factoring company as the intermediary.

Why choose RTS International for your CAD financing needs?

RTS International is a pioneer of financing using CAD with almost a decade of experience working with importers and exporters in over 40 different countries. With RTS International, exporters can receive quick, customized funding solutions to increase cash flow and accelerate their growth while gaining greater financial stability.

If you’re interested in learning more about CAD or partnering with RTS International on funding solutions, contact us today!