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Trading Terms

Cash against documents (CAD)

A buyer or importer must pay the indicated invoice amount upon presentation of commercial documents, such as a bill of lading or insurance certificate. This is known as a sight payment, where the payment is made immediately upon the presentation of the documents. It is a common practice in international trade, ensuring that the seller receives payment before the goods are released to the buyer. This protects both parties and is a key term to understand in the world of finance.
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