Documentary Collections
A payment service used when trading with foreign countries – usually when the buyer and seller are familiar.
Trade quickly and securely with foreign countries.
The buyer does not pay until the goods are shipped.
The seller receives payment faster than with a traditional invoice.
What is documentary collection?
When using documentary collection, the bank acts as a link between the buyer and seller. Compared to letters of credit, we do not guarantee that the goods will be paid for. However, we can send reminders to the buyer should payment not be received.
How it works
1
Both parties agree to use documentary collection
The seller draws up a document on how payment should take place and sends it to their bank. The bank forwards it to the buyer's bank.
2
The seller ships the item
If it is shipped by car or aeroplane, the buyer can retrieve the goods at any time.
3
The buyer receives a payment notification from their bank
Seller receives payment for the item.