Documentary collections

Documentary Collections
Documentary Collections definition :
Trade transactions handled on adraft basis.
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DOCUMENTARY COLLECTIONS - Trade transactions handled on a draft basis.
DOCUMENTARY CREDIT - Written undertaking by a bank on behalf of an importer authorizing an exporter to ...

An overseas bank, acting on your bank's behalf, will only release the documents necessary for your customer to take possession of goods once it formally accepts the terms of the bill. Documentary collections are typically used for exports outside ...

usually transacted by the seller's bank through the buyer's bank, with the latter presenting the shipping documents to the buyer in exchange for payment or for signing a promissory note like instrument called a time draft.
Documentary ...

In both cases the bank acts only as an agent for the exporter, regulating the timing of the transaction and seeking payment from the overseas buyer/importer. The basis of execution of documentary collections is provided by the Uniform Rules for ...

See also: Documentary collection, Banks, Letter of credit, Invoice, Financial leverage