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).

Documentary collection

Benefits of using collections

For a buyer

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

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

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 banks

    from more than 85 countries throughout the world

  • Trade finance
    limits

    with the world's leading banks

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