DOCUMENTARY COLLECTION
Documentary collection is a security instrument that does not include any payment commitments on the part of the bank, which means it is intended for transactions of relatively low value and in cases where the parties are already familiar with one another.
Documentary collection offers better security than open account payment.
The seller (exporter) ships the goods to the buyer (importer) and presents the required export documents to his bank with clear instructions. The presenting bank forwards the documents to the buyer's bank for collection.
The buyer can receive the documents after they fulfil the seller's instructions, i.e. against payment, against acceptance of a bill of exchange, or against another clearly stated term.
TYPES OF DOCUMENTARY COLLECTION
The buyer / importer can take over the documents:
AGAINST PAYMENT
This means immediate payment of goods or services and delivery of contractually agreed documents to the buyer – importer.
AGAINST THE ACCEPTANCE
This means the delivery of agreed documents based on the buyer's acceptance of a bill of exchange.
AGAINST OTHER TERMS AND CONDITIONS
HOW TO GET A DOCUMENTARY COLLECTION?
CONSULT WITH US
Need more information?
Contact our relationship managers, who will happily help you make your final decision.
