Documentary collection

A simple, inexpensive and secure way to pay!

Rates

Documentary collection is a good method of settlement when the buyer is unwilling to prepay and the seller is reluctant to hand over the ownership documents of the goods until the buyer makes payment or accepts the bill of exchange.

Ownership of the goods is transferred only upon commitment to pay

The buyer does not need to pay in advance

The bank controls the smooth transfer of documents

Minimises potential transaction risk

Please note the potential settlement risks when using documentary collection services

How do I get it?

1.
Agree the terms and conditions with your business partner
The seller and the buyer sign an agreement providing for payment by documentary collection.
2.
Visit our branch
Visit your nearest bank branch for a consultation at a time convenient for you. Submit the completed application for documentary collection services and other documents specified in the application.
3.
The seller and their bank handle the transaction
The seller sends the goods to the buyer and forwards the documents to the seller’s bank for collection. The seller’s bank sends the documents to the buyer’s bank.
4.
The buyer and their bank handle the transaction
The buyer’s bank, after the buyer has paid the documents or committed to pay them in the future (by accepting the bill of exchange), hands over the documents to the buyer and transfers the funds to the seller’s bank. The seller’s bank transfers the funds to the seller.

Frequently asked questions

A documentary collection is a payment form in which the bank, acting on the instructions of the seller (exporter), transmits commercial and/or financial documents to the bank of the buyer (importer), specifying the terms and conditions under which the documents are to be delivered to the buyer (importer).

The conditions for documentary collection are the following:

  • Documents against payment – D/P or cash against documents – CAD;
  • Documents against acceptance – D/A;
  • Other terms and conditions.

In the process of documentary collection, the bank of the buyer (importer) is not obliged to pay, but controls the process of paying for the documents and provides intermediation services.

  • The documentary collection can be used when the buyer (importer) is unwilling to pay in advance and the seller (exporter) is not willing to be paid for the goods after they have been received by the buyer (importer);
  • The documentary collection can be used when there is trust between the seller (exporter) and the buyer (importer);
  • The documentary collection can be used when the political and legal system in the country of the buyer (importer) is stable;
  • The documentary collection can be used when the country of the buyer (importer) allows unrestricted exchange of currency and import of goods.

Have any questions?

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