Documentary Collection
Documentary collection is a way of settlement where the seller submits the documents related to a trading transaction to the buyer through its bank after the buyer settles them (documents against payment – D/P, cash against documents – CAD) or undertakes to settle them by accepting a bill of exchange (documents against acceptance – D/A).
How can a buyer benefit from this service?
- Payments for goods will be safer than making a prepayment (you will pay when the goods have been already sent by the seller).
- You will be able to choose when to settle the documents.
- You will be able to use the goods, if the seller agrees to give them to You after accepting a bill of exchange wit the deferred payment term.
- This is not a complicated and not expensive way of settlement.
How can a seller benefit from this service?
- You will sell Your goods safer than deferring a payment to a buyer (when collecting documents with the ownership title such as bill of landing, the buyer will not be able to take the goods before it pays for them or before it accepts a bill of exchange).
- The Bank shall control that documents are handed over only after implementation of the seller's instructions and shall mediate to their settlement.
- Documents shall be prepared in accordance with the international standards.