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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
01
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).
02
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.
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 banksfrom more than 85 countries throughout the world
Trade finance
limitswith the world's leading banks
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