Documentary Collections

Documentary collections can provide exporter and importer with a compromise between open account trading and documentary credits.

They offer the exporter a degree of security in the transaction. The Bank has control over the goods through the title documents and can arrange for an overseas correspondent to release the documents only against payment or acceptance of a bill of exchange with payment at a future date.
Please note that banks have no payment obligations in documentary collections.

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  • Export

    Collections offer exporters the following advantages:

    • The exporter's bank monitors whether the payment is made or accepted
    • The shipping documents stay in the banking system until the collection has been paid or accepted
    • You obtain better liquidity
    • They are easier to process than documentary credits

  • Import

    Collections offer importers the following advantages:

    • A payment or a commitment to pay is made only upon receipt of the relevant documents by your bank
    • You can decide not to accept or pay the collection
    • The importer's bank will effect payment on the importer's behalf rather than the importer having to make payment by international money transfer or bank draft
    • A more simple and cheaper alternative to a documentary credit

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