Documentary Collection

A documentary payment instrument that ensures security of business transactions for both parties.

How may we
assist you?

Intermediation of payments
and exchange of documents
subject to specific conditions

For a seller, Documentary Collection provides more assurance than clean payment

As a buyer, you can enjoy the peace of mind that the goods have been shipped

Buyer may keep its funds longer

Lower fees compared to Documentary Letter of Credit

DOCUMENTARY COLLECTIONS ARE SUITABLE IN THE FOLLOWING SITUATIONS

  • Domestic and international payments

  • Prevents situations where buyers collect goods without payment

  • Neither party wishes to trade without security

  • Political, economic, and legal environment in the buyer’s country is stable

  • Lower-risk transactions with no need for bank’s involvement in the contractual relationship

  • For more transaction security, use Documentary Letter of Credit

USEFUL INFORMATION

  • Seller sends necessary documents to the buyer’s bank; the bank only provides documents to the buyer after payment
  • Conventional documentary payment instrument mainly used in external trade in most countries
  • It is not secured by a bank’s commitment
  • Documentary Collection guarantees to the seller that neither the presented documents nor goods (in case of documents of title) would be released to the buyer without payment (bank only releases documents to the buyer against a payment order for the collection settlement) or without acceptance (bank only releases documents against the acceptance of a bill of exchange/issuance of a promissory note by the buyer) 

Documentary Collection is particularly beneficial for importers, as there is no need to tie up cash up front.

  • Importers can enjoy the peace of mind that the goods were shipped
  • Stronger payment assurance for exporters compared to clean payment
  • Lower bank fees (compared to charges for Documentary Letter of Credit processing)  

Documents:

Find your global transaction payment systems specialist (PDF, 253 kB)