1 Exporter sends sales contract to the importer. 2 After agreeing on the sales contract the importer submits various papers to its bank to open a CAD account. 3 The importer deposits the full payment amount with his bank. 4 Importer’s bank issues the CAD, i.e. makes payment to exporters bank. 5 Exporter’s bank receives the details of the payment via SWIFT code. 6 Importer receives the hard copy of the issuance of CAD from his bank. 7 Importer sends the hard copy to the exporter through courier service. 8 Exporter receives the hard copy of the CAD. 9 Exporter initiates the collection of CAD through submitting hard copy of the CAD, proforma invoice and sales contract to his bank 10 Exporter’s bank verifies the documents. 11 If there is any problem with the submitted papers, exporter’s bank declines to make the payment to the exporter. If there is no problem, then exporter’s bank makes the payment to the exporter. 12 Exporter receives the advance payment and start processing the shipment of goods.
