Cash Against Documents

What is Cash Against Documents?

In Cash Against Documents, the exporter (drawer) present invoice and the shipping documents through it's bank (remitting bank) to be dispatched to importer's bank (collecting bank). Collecting bank delivers the documents to the importer only after payment to remitting bank.

Cash Against Documents Features

It is safer for exporters compared with open account payment method.
The exporter should not send the documents directly to the importer.
In Cash Against Documents, the documents are delivered to importers in return for payment or against the acceptance of draft for deferred payments.
If the transaction is deferred and based on draft acceptance, then it is called Cash Against Documents with Acceptance Loan.