Documentary Collection
A documentary collection is collection of an amount from the buyer against the documents with help of the bank.
Documentary collections are subject to Uniform Rules for Collections, ICC Publication 522.
Benefits for the importer:
The payment is to be made against documents confirming the delivery of goods.
The importer can decide not to accept or pay the collection order.
An alternative to advance payment.
Simpler and cheaper alternative to a documentary credits.
The credit limit is not used.
Benefits for the exporter:
The shipping documents stay in the bank system until the collection has been paid or a bill of exchange accepted.
Documentary collection is easier to process than documentary credits.
The exporter’s bank monitors whether the payment is made or bill of exchange accepted.
More information on +371 67 959 599.