Meaning & use
cash against documents
Last updated
Meanings
phrasefixed phrasebusinessfinancespecialist
A payment arrangement in international trade where the buyer pays in cash when the seller's shipping documents are presented.
Grammar: Used as a fixed phrase, often after 'on' or 'by': on cash against documents terms.
Patterns
- on cash against documents terms
- by cash against documents
- cash against documents basis
The exporter agreed to sell on cash against documents terms to reduce risk.
Under cash against documents, the bank releases the shipping papers only after the buyer pays.
The contract specified cash against documents rather than an open account.
phrasefixed phrasebusinessfinancespecialist
The set of documents a bank hands to the buyer in exchange for payment under this arrangement.
Grammar: Often used with 'the' to refer to the documents themselves: the cash against documents were presented.
Patterns
- present cash against documents
- collect cash against documents
The bank presented the cash against documents to the buyer's bank.
She checked the cash against documents before releasing them.
Common combinations
- on cash against documents terms
- They agreed to trade on cash against documents terms.
- cash against documents basis
- The deal was done on a cash against documents basis.
- present cash against documents
- The seller's bank will present cash against documents for payment.
- cash against documents transaction
- A cash against documents transaction lowers risk for the exporter.
Synonyms and how they differ
- documents against payment
- Very similar, but 'documents against payment' is the more common modern term in banking; 'cash against documents' emphasizes cash payment.
- cash on delivery
- Different: payment is made when goods arrive, not when documents are handed over.
Word family
- cash against document phrase
- Rare singular form, sometimes seen in older contracts.
Commonly confused: cash against documents or cash on delivery?
cash against documents vs cash on delivery
Cash on delivery means you pay when the goods are delivered; cash against documents means you pay when the shipping documents are presented.
Practice
Which phrase correctly completes the sentence: 'The exporter sold the goods ______ cash against documents terms'?
Choose one answer.
'On ... terms' is the standard collocation for payment arrangements. 'In' and 'at' do not fit this fixed phrase, and 'by' would need a different structure like 'by cash against documents' without 'terms'.
Make it your own
Write a sentence using “cash against documents”, then check it and compare it with the examples above.