Documentary collections
Foreign Bills for Collection
A Documentary Collection is an instruction from the exporter to a remitting bank to collect payment from an importer.
What this is
Giving the exporter control
The bank acts as a collecting agent for the exporter. It enables the exporter to maintain control over the goods until payment is made or acceptance obtained.
What's hot

Simplicity
A convenient way to receive payment

Convenience
Exporter is relieved of administrative burden

Security
The exporter maintains better control of the goods until their buyer has either made payment or accepted the bill of exchange

Guaranteed Payment
If the exporter requires a guarantee of payment he could require the importers bank guarantee payment by avalising the bill of exchange once it has been accepted by the importer

Versatility
Cater for diverse transactions, the exporter could discount avalised bills of exchange thus improving his cash flow
Documentary collections