Collections

A Documentary Collection is a payment form which can be used by a Seller/buyer in order to strengthen its position in a transaction. In a Documentary Collection, the Seller's and Buyer's banks channel the documents but they do not undertake to make any payments themselves. A Buyer does not require a credit limit at his/her bank if importing on a collection basis, unlike other methods of international trade where a suitable credit facility, such as Letters of Credit, is required.