Cash Against Documents

 It is the form of payment sent to the importer's bank through the exporter's bank in order to collect documents indicating that the shipment has taken place after the exporter has exported the goods.

• In cash against documents payment, the bank of the importer is obliged to deliver the documents according to the payment terms. The importer can not receive the documents from the bank without fulfilling the payment terms related to the collection of the cost of the goods.
• This method, which is generally preferred by exporters and importers who know each other well, is often used to avoid commissions and other expenses.