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Introduction
Entrusted by correspondent banks, our bank collects payment from the importer and release relevant commercial documents to the importer based on entrusting bank’s instruction either on D/P (Documents against payment) or D/A (Documents against Acceptance) basis.
Product features
1) Compared to traditional letter of credit settlement, settlement through collection is less costly and more straightforward in operation.
2) Under D/A collection arrangement, the importer could get the goods after acceptance and pay out only after the goods sold, it improves importer cash flow.
Eligible Applicants
1) Importer prefers a less costly and easier mode of settlement other than letter of credit.
2) Depending on importer’s liquidity and cash flow position, importer may negotiate with exporter to settle either on D/P or D/A terms.
Application requirements
1) Legally registered in Singapore.
2) Maintain current account with our bank.
Application Procedures
1) Exporter sends transport document to their bank on collection basis.
2) Upon receipt of the transport documents, our bank inform importer to pay (D/P) or accept (D/A).
3) After the importer pay or accept, our bank releases the transport documents to importer.
4) Upon maturity under D/A, importer to pay exporter though our bank.
Download Forms
Form_Application For Irrevocable Documentary Credit.doc
Form_Application For Amendment to Irrevocable Documentary Credit.doc
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