As part of our documentary collection process, we forward your export documents to a bank in the buyer's country. The documents are only released to the buyer when payment terms and conditions are met.
Our process offers:
- Availability in most major currencies
- A more cost effective solution than a documentary credit due to a simpler process
- Monitoring the collection process for you from the dispatch of your documents through to receipt of the payment
- You stipulate the terms of the collection, so that it aligns with your underlying commercial contract
- You receive payment when we receive proceeds from your buyer's bank
- You have an alternative form of payment to an export documentary credit
- Issued on a 'sight' or 'term' basis. 'Sight' means that drafts are drawn for immediate payment, 'term' means that drafts are drawn on a term payment basis, e.g. 30 days after sight, 90 days from bill of lading.
Know some of the risks
- Payment default risk is greater than that of a documentary credit as the buyer can refuse payment at any time
- Disputes over terms and conditions after you ship your goods can result in delayed payment or non-payment
- Unplanned expenses may arise if the buyer delays or defaults payment
- When documents are released against acceptance of a term bill, you will lose control of the goods and be solely reliant on the buyer’s credit standing for payment on due date.