What is CAD financing?

CAD financing is a line of international financing advantageous to the buyer as they inspect the goods before transferring the funds to the financial institution. Cash Against Documents financing protects buyers from accepting goods of less quality or quantity than agreed upon.

What is cash against documents (CAD) financing?

Cash against document financing (CAD financing) is a method in which an importer pays for goods before receiving them. To ensure the satisfaction of the transaction from both parties, a third party will accept the shipping and title documents for the exported goods.

How can CAD financing help facilitate international trade deals?

Letters of credit are another financing method to help facilitate international trade deals. As with CAD financing, letters of credit benefit the exporter who is unwilling to provide open trade credit. Typically, this is because they are unfamiliar with the importer or the buyer does not have a credible credit history.

What is cash available for distribution (CAD)?

Cash Available for Distribution (CAD) is a REIT metric that subtracts recurring capital expenditures from funds from operations (FFO). CAD is a non-GAAP measure that is used as a proxy for a REIT's cash flow for investors CAD can be increased organically or through the acquisitions of new properties.