Note: For the importer, the advantage of documentary collection over a letter of credit is that it does not impact their creditworthiness. For the exporter, it has the disadvantage that the importer is not legally required to take delivery of the goods and to complete the purchase. Attention needs to be paid to this risk, in particular, in the case of custom-made or seasonal goods, or goods that entail especially high shipment costs. We can gladly advise you on how best to safeguard your specific business transaction.
You instruct us to collect the value of the shipped goods via trade documents. Your business partner, the importer, only receives the required documents upon payment. In the case of documentary collection, the importer only receives the documents upon payment; the exporter only receives payment upon presentation of the required documentation.
- Documentary collection is stipulated in the contract concluded between importer and exporter.
- Once goods have been shipped, documents are presented to the exporter’s bank.
- The exporter’s bank presents the documents to the importer’s bank, and requests payment.
- After being instructed to do so by the importer, the importer’s bank makes the payment to the exporter’s bank.