Coffee Glossary · Trade
Cash Against Documents (CAD)
A documentary collection payment method lighter than a letter of credit: the exporter ships, then routes the title documents through banks; the buyer receives them — and with them the ability to claim the cargo — only upon paying (or accepting a time draft). CAD trusts the buyer to pay when documents arrive but keeps the goods controlled until they do. Common in established coffee relationships, often paired with a 20–30% contract advance; cheaper and faster than L/Cs, riskier if a buyer walks away mid-ocean.
Related terms
Letter of Credit (L/C)
A bank's irrevocable payment undertaking: the buyer's bank commits to pay the exporter upon presentation of…
Bill of Lading (B/L)
The ocean shipment's master document, issued by the carrier: simultaneously a receipt for the cargo, evidence…
FOB (Free On Board)
The most common green-coffee Incoterm: the seller's price covers everything up to and including loading the…
Crop Year / Fresh Crop / Past Crop
Coffee's vintage system: each origin's harvest defines its crop year (Laos: roughly October–September), and…
Cup of Excellence (CoE)
The most prestigious origin-country coffee competition: national juries winnow hundreds of farm entries…
Differentials (Price Basis)
How most coffee is priced: as a premium or discount ('differential') against the futures markets — New York's…
Reading up before buying? Volcana Coffee exports SGS-inspected specialty Arabica and Fine Robusta from the Bolaven Plateau, Laos — and we're happy to walk new importers through every term on a real offer sheet.
Talk to Our Export Team