💵 CASH IN ADVANCE (CIA)
US Capital Private Bank Knowledge Base
📖 What is Cash in Advance (CIA)?
Cash in Advance (CIA) is a trade term where the exporter requires payment before shipping goods to the buyer. This means the seller does not dispatch the goods until the payment is fully received.
⚙️ How Does It Work?
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The buyer sends payment upfront before the goods are shipped.
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The exporter holds the goods until payment clears.
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Only after payment confirmation does the exporter arrange shipment.
💡 Why Use Cash in Advance?
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Offers the least risk to the seller/exporter since payment is guaranteed before shipping.
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Ensures sellers avoid non-payment or delayed payment.
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Provides sellers with cash flow certainty.
⚠️ Risks and Considerations
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Highest risk for buyers, as they must pay before receiving goods.
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Buyers rely on the trustworthiness and reputation of the exporter.
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May not be favorable for new business relationships due to buyer’s increased risk.
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Often used in situations where the exporter has less confidence in the buyer’s ability or willingness to pay.
🔄 Common Uses
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New or high-risk trading partners.
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Transactions involving custom or made-to-order goods.
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Markets where alternative payment guarantees are not available.
📞 Contact US Capital Private Bank
📧 Email: [email protected]
🌐 Website: https://uscapitalprivatebank.com