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
- Flexibility - making it easier to take advantage of fluctuating market conditions
- Monitoring the collection process for you from the dispatch of your documents through to receipt of the payment
- You stipulate the payment terms and conditions
- 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
- As this has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances. Applications are subject to the Bank’s normal credit approval. Fees and charges are payable.