What is documentary collection?

Documentary collection is a conditional form of payment used in foreign and domestic transactions. It is a written instruction from the exporter's (seller's) bank to the payer's (importer's/buyer's) bank to release specific documents to the payer, giving the right to dispose of goodsin exchange for the payer's meeting conditions stipulated in the collection instructions:

  • for payment of the amount indicated in the instructions or security of payment (acceptance of a bill-of-exchange or obtaining acceptance of the bill-of-exchange and payment for the bill-of-exchange) or
  • release of documents under other conditions.

Is documentary collection perfect for your business?

If you are running a trading or service business with domestic or foreign partners you know well and trust, collection is a convenient solution for you. If you are a seller, documentary collection will additionally protect you against surrendering goods to a buyer before he has paid. As a buyer, you will be certain that the goods have been dispatched in accordance with your instructions.

Contact your Credit Advisor who will give you detailed information about the offer and the documents required by the Bank, and help you prepare a collection order.