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Do think a payment method " CAD " a risk we can avoid it?

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Question added by Abd alwahab Alqaramseh , Material Section Head , CEGCO
Date Posted: 2014/02/11
Khaleel Ullah
by Khaleel Ullah , Head - Procurement Team , Middle East Technical Services Est.

CAD is a very typical term, which will put you at loggerheads and leaves you with no option but to pay.You will be having the requirement of material at site and without payment the supplier will not release the goods from its store.There is a possibility of existence of damaged goods,Incorrect goods, less numbers of goods etc., which we will find out only after actual delivery.Anyhow, the payment will be done and we will be at loosing end for making good the damage done.Hence, it is high risk and should be avoided.Many approved suppliers easily agrees on terms like20% advance,80% after delivery, which is very suitable or Payment after delivery should be negotiated.

Mohamed Abouel Atta
by Mohamed Abouel Atta , Purchasing, Planning and Exprot serivces Manager , Cadbury Egypt

yes of course when you work with good suppliers and treat them as pattners

Abd alwahab Alqaramseh
by Abd alwahab Alqaramseh , Material Section Head , CEGCO

I think it's high risk , we should use just when we deal the a trusted supplier 

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