Documentary Collection

Documentary collection can be defined as the collection through a bank of a sum of money owed by a buyer against delivery of certain documents. 

Documents against payment (D/P) and documents against acceptance (D/A), in comparison to the letter of credit is simpler and cheaper form of the settlement.

Documentary collection is the order given to the Bank by the exporter, to collect the payment of the definite amount from the importer instead. In the event of collection of payment, the Bank implements instructions for collection of payments, but does not undertakes the liability to repay the value of the submitted documents.

Advantages for the buyer:

  • Transactions low prices 
  • Operations simplicity 
  • Remuneration of the goods price after the shipment of the goods 
  • Involvement of the banks into the collection process

Advantages for the seller:

  • Transactions low prices 
  • Operations simplicity 
  • Disposal of the goods before payment 
  • Involvement of the banks into the collection payment operation 

Terms and conditions:

Documentary collection of payment
Advising of documentary collection20 USD
Monitoring andpment of the collection of payment          0.2% (min. 50 USD, max. 100 USD)
Additional expenses
Postage and communicationBy fact
Amendment20 USD
Other extra expensesBy fact