Documentary collection

a form of settlement between a buyer and seller when the buyer’s bank (representing bank) collects the amount payable by the buyer against respective documents received from the seller’s bank (remitting bank)

The representing bank, based on the instructions from the remitting bank, delivers the consignment or delivery documents (of goods/services) to the buyer and collects the appropriate amount from the buyer against such documents.

Use of documentary collection:

  • for buyers and sellers that have sufficient trust in each other and are ready to move away from letters of credit.
  • for exporters who want to minimise the risk of importer refusal to pay for goods actually delivered.

Advantages of the documentary collection service from Pivdenny bank:

  • A simple application procedure.
  • Low fees.
  • Payments between regular partners become more flexible.
  • An opportunity to optimise transactional costs.
Fees:
Setting up a documentary collection and sending documents under export collections
0.2% of the amount per the documents (USD 100 - max. USD 400 (in UAH, according to the NBU exchange rate)
Advising and transfer of documents under import collection against payment or acceptance
0.2% of the amount per the documents (USD 100 - max. USD 400 (in UAH, according to the NBU exchange rate)

Procedure for payments under documentary collections:

  1. The buyer signs a contract with the seller envisaging payments in the form of documentary collection.
  2. On the shipment date, the seller sends the goods to the forwarder/transporter. The forwarder/transporter provides consignment documents to the seller.
  3. The seller prepares the required package of documents including: consignment documents/invoices, commercial invoice, insurance certificate, specifications, etc. and sends these, along with collection instructions, to its bank for sending to the buyer’s bank for delivery to the buyer against payment.
  4. The seller’s bank accepts the documents with the collection order and sends the documents together with the instructions on payment or acceptance of the documents to the buyer’s bank.
  5. The buyer’s bank advises the buyer of receipt of the documents and conditions of the document transfer and payment.
  6. The buyer makes the payment and the buyer’s bank gives the documents to the buyer. Now the buyer provides the relevant documents to the forwarder/transporter to receive the goods.

How do I apply?

  • Order online

    Submit your application and our manager will contact you to schedule an appointment.

  • Contact your personal manager

    for existing clients of the bank.

FAQ

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