Physical address
4 Merchant Place Corner Fredman Drive and Rivonia Road Sandton 2196
Postal address
PO Box 650149 Benmore 2010
Contact numbers
T: +27 11 282 1808 F: +27 11 282 8088
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The simplicity of the operation makes documentary collections a convenient way to receive payment from an importer.
The exporter is relieved of the administrative burden of collecting the proceeds, handling correspondence and any follow-up action.
Control of the goods is maintained until the importer pays or accepts the financial instrument.
The exporter may request the collecting bank to guarantee (pour aval) the financial instrument, thereby obtaining a guarantee of payment independently.
It is a versatile financial instrument that comes in different forms to cater for the diverse types of commercial and financial transactions and under defined circumstances.
Upon payment or acceptance, the documents of title are released to the importer.
This payment method is normally used when the importer and exporter have a sound relationship and the financial standing of the importer is undoubted.
By using the bank as a collecting agent, a documentary collection is a practical method for an exporter to receive payment form an importer for goods and services. The exporter is able to maintain control over the consignment until payment is made or acceptance of the bill of exchange is obtained from the importer.
Documentary collections
A Documentary Collection is an instruction from the exporter to a remitting bank to collect payment from an importer.
What this is
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.
A convenient way to receive payment
Exporter is relieved of administrative burden
The exporter maintains better control of the goods until their buyer has either made payment or accepted the bill of exchange
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
Cater for diverse transactions, the exporter could discount avalised bills of exchange thus improving his cash flow
Documentary collections
Physical address
4 Merchant Place Corner Fredman Drive and Rivonia Road Sandton 2196
Postal address
PO Box 650149 Benmore 2010
Contact numbers
T: +27 11 282 1808 F: +27 11 282 8088