Documentary Collections

This is a method of payment that allows Credit Bank to handle import or export documents (Financial or Commercial documents) in accordance with instructions issued and received. Documentary Collection is a transaction whereby the exporter entrusts the collection of payment to the remitting bank (exporter’s bank), which sends documents to a collecting bank (importer’s bank), along with instructions for payment. That is, the documents will be delivered either against payment, against acceptance or on other terms and conditions as agreed between buyer (importer) and seller (exporter).
Funds are received from the importer and remitted to the exporter through the banks involved in the collection transaction in exchange for those documents.
The Documentary Collections facility offers exporters/importers the flexibility, security and comfort to conduct seamless business, as we manage all the document-handling needs on behalf of both export and import clients.
Credit Bank offers this facility in both Local as well Foreign Currency.

Benefits of Documentary Collections

  • Documentary collections are less complicated and less expensive.
  • The importer is not obligated to pay for goods prior to shipment.
  • The exporter retains title to the goods until the importer either pays the face amount on sight or accepts the draft to incur a legal obligation to pay at a specified later date.
  • With Credit Bank, a dedicated team ensures seamless follow-up at all stages of the import / export and the payment process giving you peace of mind.

Types of collections handled by Credit Bank

  • Import Documentary Collections
  • Import Documentary Collections are payment mechanisms, usually cheaper than Letters of Credit but provide more security to the supplier than open account transactions. This mode of payment generally boosts trading relationships by reassuring suppliers of their payment and safeguards the importer’s title to goods. Usually funds are received from the importer and remitted to the exporter through the banks involved in the collection in exchange for those documents.
  • Export Documentary Collections
  • Import Documentary Collections are payment mechanisms, usually cheaper than Letters of Credit but provide more security to the supplier than open account transactions. This mode of payment generally boosts trading relationships by reassuring suppliers of their payment and safeguards the importer’s title to goods. Usually funds are received from the importer and remitted to the exporter through the banks involved in the collection in exchange for those documents.