Helping you build safe financial national and international partnerships
Documentary Collection is an option to arrange business with international partners and, compared to other documentary credit instruments, is easier and more straightforward as it does not require any application procedure.
This arrangement is offered at very favorable rates and is executed very quickly by the Bank.
Documentary Collection is an arrangement under which an exporter entrusts collection of a payment to his bank, which bank sends the documents together with the payment instructions to the Importer’s bank. We offer the following two types of documentary collections:
Under this method, documents are delivered to the importer only after the importer deposits the money in the Importer’s bank. Using this method, the exporter can avoid credit risk or the risk of non-payment, since payment is received prior to the transfer of owner¬ship of the goods.
Under this method, documents are delivered to the importer only after the importer accepts the bill of exchange. Since there is no legislation for the business with the bill of exchange, the documents are delivered to customer-importer after they sign a letter (undertaking letter) prepared by our bank that promises the payment on due date by the importer as per Collection instructions. This provision allows the exporter to ensure that the buyer is legally bound to pay the full price for the goods, before ownership is transferred.