Collections are a trade finance service that help exporters and importers manage payments linked to the shipment of goods, with the bank acting as an intermediary.
In a collection transaction, the exporter ships the goods and submits the shipping documents to their bank. These documents are then sent to the importer’s bank, which releases them to the importer according to agreed payment terms.
Depending on the arrangement, documents are released:
• Against payment, where the importer pays immediately before taking delivery of the goods, or
• Against acceptance, where the importer commits to pay on a fixed future date before receiving the documents.
This process allows exporters to retain control over shipping documents until payment or a payment commitment is secured, while importers benefit from a structured and transparent payment process.
Why use collections?
• To manage payment risk in international trade
• To ensure shipping documents are released only under agreed conditions
• To support cash flow planning for both exporters and importers
• To facilitate trade without the complexity of a letter of credit
Other Types of Account/Services at MauBank
