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.
Procedure for payments under documentary collections:
- The buyer signs a contract with the seller envisaging payments in the form of documentary collection.
- On the shipment date, the seller sends the goods to the forwarder/transporter. The forwarder/transporter provides consignment documents to the seller.
- 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.
- 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.
- The buyer’s bank advises the buyer of receipt of the documents and conditions of the document transfer and payment.
- 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?
Contact your personal manager
for existing clients of the bank.