How Export Documentary Collections Work
An Export Documentary Collection is a method of payment by which an exporter can collect payment from an importer through an intermediary bank, which facilitates the flow of title documents and payment.
- The exporter’s bank solicits a payment, on the exporter’s behalf from an importer by sending title documents and a cover letter to the importer’s bank.
- The importer’s bank advises the importer of the bill. When the importer pays the bill, the importer’s bank pays the exporter’s bank.
- When the exporter’s bank receives payment, it promptly credits those funds to the exporter.