Import documentary collection is a conditional form of trade settlements in which exporter instructs his bank to release trade documents to your company (importer) through Bank Millennium in return for payment or securing future payment (for instance, through acceptance of bill of exchange).
In import documentary collection Bank Millennium receives documents representing goods accompanied by a collection instruction from the exporter's bank, for release of which your company is to make or secure payment. Upon releasing the documents you may collect the goods from the port of destination or from the carrier.
- You secure yourself against the risk of non-delivery of goods which are to be paid for.
- If there is deferred payment, you may collect the documents and goods in return for acceptance of bill of exchange payable at a later date. If at that time you sell the goods to your buyers, you will obtain funds to pay for the purchase without commitment of your funds.
- You will get more attractive terms of payment in return for securing the counterparty's risk of default on payment.