Documentary collection

Documentary collection

Documentary collection (Collection) is instructions to a bank to deliver a particular set of documents to a buyer against payment (D/P or CAD) or against draft acceptance (D/A) (or on other terms and conditions).

Benefits of using collections

For a buyer

reducing the risk of a seller's default on delivery obligations
possibility of managing funds more efficiently (reaching an agreement on deferred payment without the need to seek financing)

For a seller

confidence that the shipping documents will not pass at the disposal of a buyer until a payment is made or draft is accepted by a buyer

For all parties

protection by international rules that establish rights and obligations

Features of using collections

Banks are not obligated to effect payment under collections.

A bank's liability is limited to the transferring of documents against payment or acceptance (or on other terms and conditions).

Usually collection is used:

when a buyer and a seller trust each other and are ready to waive using of letters of credit and guarantees but still do not want to make deliveries “on an open account”;

if the transfer of shipping documents through banks is fixed by legislation.

Scheme

FUIB is a reliable partner

TOP-5 banks

by the volume of documentary operations
65+ of 100

the largest companies of Ukraine cooperate with us
30 years

in documentary business
400+
partner banks

from more than 85 countries throughout the world
Trade finance
limits

with the world's leading banks

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