Documentary Collections

International transaction

A secure, universally-recognised way of sending and receiving payments overseas

A documentary collection is a transaction in which a bank accepts the task to collect payment on behalf of the seller by delivering the corresponding documents to the buyer.

Compared to delivery on open account, documentary collection offers greater security as it prevents the buyer from taking possession of the goods before either paying or accepting a bill of exchange.

Documentary collections are very suitable in cases where the exporter is reluctant to supply the goods on an open account basis but does not need the degree of security provided by a documentary credit.