A method whereby the seller uses the services of his bank to ensure that the buyer only receives the shipping documents under conditions specified by the seller, ie upon payment, or upon acceptance, of the seller's bill of exchange. (see also Bill of Exchange, Cash Against Documents and URC522).
An international payment technique allowing each party to retain key elements of control and increasing the level of security of the transaction, even in the absence of a Letter of credit. The importer is not required to pay the exporter before the merchandise ordered is shipped, while the exporter is able to retain title to the goods until the importer either pays the draft ( Document against Payment, D/P) or accepts it ( Document against Acceptance, D/A). In both cases the bank acts only as an agent for the exporter, regulating the timing of the transaction and seeking payment from the overseas buyer/importer. The basis of execution of documentary collections is provided by the Uniform Rules for Collections (URC) drafted by the International Chamber of Commerce in Paris. Français: Encaissement documentaire Español: Cobro de créditos documentarios
Where you draw up a bill of exchange (see Bill of exchange), which allows you to keep control of your goods and raise additional finance. An overseas bank, acting on your bank's behalf, will only release the documents necessary for your customer to take possession of goods once formally accepts the terms of the bill. Documentary collections are typically used for exports outside the EU to customers you have an established relationship with.
The exporter ships the goods to the foreign buyer without a confirmed letter of credit or any other form of payment guarantee.
a payment method that processes the collection of a draft and accompanying shipping documents through international correspondent banks
a payment service offered by banks through which an exporter may obtain payment from an importer through banking channels
a procedure in which a bank receives documents in trust from the selling (exporting) client with a mandate to have them remitted to the buyer (foreign importer) under the conditions prescribed by the seller
an unconditional order from the exporter requiring the buyer to pay on demand or at a determined time a specified amount to a specified person
The process of delivering title, shipping and related documents for the goods exported.
banking) A method of effecting payment for goods whereby the seller/exporter ships goods to the buyer, but instructs his bank to collect a certain sum from the buyer/importer in exchange for the transfer of title, shipping and other documentation.
An international payment method in which the exporter sends documents concerning a shipment through banking channels with the instructions to release them to the buyer only upon receipt of payment or the buyer's written promise to pay on a specified future date.
the payment method to deliver documents and payments between the exporter upon payment by the importer.
Procedure in which banks in the buyer's and seller's country act for the seller by presenting commercial documents to the buyer along with a payment demand (usually a bill of exchange).
A banking term referring to service offered by banks to sellers in order to expedite payment of a sale merchandise on an international basis. This service is usually transacted by two banks utilizing the seller's shipping documents, with or without drafts.