Whether it is beneficial for the seller to use the CAD payment method

CAD concept.

CAD (Cash Against Documents) means that after the buyer makes the payment, the seller submits the documents. Payment by the buyer is a prerequisite for the delivery of the documents by the seller. The use of this method of payment in the absence of the seller's knowledge of the buyer's creditworthiness has a protective effect on the seller.

The nature of CAD.

International**, there are three commonly used payment methods: remittance, collection, and letter of credit. The first two are commercial credit, and the latter is bank credit.

CAD belongs to the scope of remittance and has the nature of commercial credit. There are three ways of remittance: mail transfer (M t), telegraphic transfer (t t), bill transfer (d d), and in international practice, there are three methods:

Prepayment, payment on sight (including sales and consignment), cash payment (CAD). Advance payment is the safest for exporters, payment on sight is the most risky for exporters, and cash payment is between the first two, which is fairer for exporters and importers. The remittance is the method of remittance, that is, the importer takes the initiative to remit the payment to the exporter; Collections and letters of credit are reversed, i.e. the exporter takes the initiative to claim payment for the goods. Reference.

That's right, that's right.

CAD is considered safe.

First of all, let's talk about the background, CAD is cash against document, which is the same thing as DP (document against payment)! The Chinese translation can be called voucher payment, do you understand how it works when you see this Chinese?

The first half of the CAD process is the same as LC's, except that after the shipper delivers the full set of documents to the bank, if the buyer refuses to redeem the bill, the bank is not responsible for paying your company, and the bank will only return the full set of documents to your company.

Therefore, from the perspective of risk management in the windy state, the risk of D P is higher than that of L C. ,1.CAD stands for Cash Against Documents, that is, payment after sending the original document.

2.The biggest difference between CAD and L C is that L C has a bank as an intermediary and L C as collateral. Therefore, the seller has a greater guarantee that he can receive the money.

CAD, on the other hand, is unbanked or secured. Therefore, it will be relatively risky, and you will not be able to collect money. So if you do CAD, you have to be careful about sending B l to customers!

Because the only guarantee of CAD is to hold B L, it is best to collect money before letting B L customers.

3.dp stands for Document Agains Payment which is similar to CAD, but the original document is handed over to your bank first, and then he will handle the bill and collect the money on his behalf.

But if the buyer doesn't have money, the bank won't pay you money on behalf of the customer, because the buyer has no collateral for the bank, and the bank has no obligation to find the number for you!

In the case of DP, the DP means that after the buyer promises to find the money, the bank will release the documents for the customer, and the customer will not immediately deduct the money in Bank A C for the seller. That is, after the tie, the money is paid first. So it's easy to drag a few racks for guests!

ps If you want to be safe d both method system, after the goods first email file for a customer, and then call it to do t t remittance to find the number for you, cofirm after receiving the loss of money and then send fedex to return the original b l to sell socks carefully. However, there is a chance that you will lose your FedEx mail, so it is best to send 2 3 sets. Just in case.

However, he is not willing to make it clear to the same customer before leaving!

If you have any questions, you can email me

This settlement method is risky, first of all, the importer pays after acquiring the bill, and whether to perform the payment depends on the creditworthiness of the importer; Secondly, although banks sometimes accept (and advise banks not to accept) this method, but the practice is not the same, some banks deal with documents in the form of DP, and some directly handle them in the form of CAD, in fact, this settlement method is not a collection after all, how to deal with CAD business, there is no international practice to follow, once there is a dispute, resort to court, there are unpredictable risks to all parties, so in the actual business should try to avoid this way, banks should also be cautious when handling such business.

It is the abbreviation of cash against documents, which is a practice that has gradually emerged in recent years, and it is a settlement method for the importer to pay after the exporter delivers the documents to the importer, whether it is another way of saying t t payment is not very clear, and it is somewhat similar from its operation process, but the exporter often hands over the documents to the bank and the bank transfers the importer through its intermediary bank, and many banks also accept it.

How to pay, just find a free one.

1. CAD is the abbreviation of cash against documents, which is a practice that has gradually emerged in recent years, and it is a settlement method for the importer to pay after the exporter delivers the documents to the importer, whether it is another statement of T T payment is not very clear, and it is somewhat similar from its operation process, but the exporter often hands over the documents to the bank and the bank transfers the importer through its intermediary bank, and many banks also accept it;

2. Precautions:

1. The use of this settlement method is more risky, first of all, the importer pays after acquiring, and whether to perform the payment depends on the creditworthiness of the importer;

2. Although banks sometimes accept (CCB does not accept) this method, the practices are not the same, some banks deal with documents in DP mode, and some directly handle them in CAD mode, in fact, this settlement method is not collection after all, and there is no international practice to follow how to deal with CAD business;

3. In the event of a dispute and resort to court, there are unpredictable risks to all parties, so this method should be avoided as much as possible in actual business, and banks should also be cautious when handling such business.

The use of this settlement method is risky, first of all, the difficult importer pays after acquiring the bill, and whether to perform the payment depends on the creditworthiness of the importer; Secondly, although banks sometimes accept (advise banks not to accept) this method, but the practice is not the same, some banks deal with documents in the form of DP, and some directly handle it in the form of CAD, in fact, this settlement method is not a collection after all, how to deal with CAD business, there is no international practice to follow, once the dispute over the lease is eliminated, and the court is aware of the unpredictable risk to all parties, so this method should be avoided as much as possible in the actual business, and the bank should also be cautious when handling such business.