Collections

Collections are international trade procedures in which the bank in the importer’s country acts on behalf of an exporter for collecting and remitting payment for a shipment. The exporter presents the shipping and collection documents to his or her bank (called the Remitting Bank) which sends them to the Bank in the importer’s country.

The importer’s bank (called the Collecting bank) hands over shipping and title documents (required for taking delivery of the shipment) to the importer in exchange for cash payment (in case of ‘documents against payment’ instructions) or a firm commitment to pay on a fixed date (in case of ‘documents against acceptance’ instructions).