Cash Against Documents
What is Cash Against Documents?
The cash against documents is a payment tool or method used in international transactions between a seller and buyer. Basically, it is a process where an importer pays for the ordered goods before they are received.
Typically, the cash against document is when an exporter (seller or vendor) instructs his bank to release shipping documents to the importer upon the full payment of shipment. After payment, the importer receives the documents.
The cash against documents is beneficial to the parties involve in this method of payment. For the exporter, it guarantees the payment of goods. In the case of the importer, it ensures that the precise products paid for are received.