Dictionary of all accounting terms
Payment term whereby the customer sends over cash to a vendor before they ship/deliver the specified product. Once the cash has been received by the vendor, they will then deliver the product to the customer.
Cash in Advance the same as cash on delivery is used to eliminate credit risks for the seller. In this case, it's beneficial for the seller but may bring risks for the buyer when the seller or the shipping is not reliable.
Cash in Advance is commonly used in international trade and online marketplaces.