Introduction
Exporter (drawer) presents documents drawn on the importer (drawee) to us for processing and dispatch to the collecting bank for collection. Upon receipt of payment, the export proceeds are credited to drawer’s account with us. Documents for collection may be delivered to drawee either against payment (D/P) or acceptance (D/A).
Product Features
1) Higher risk: Compared to payment under documentary credit, the exporter is taking the importer’s risk of non-delivery of goods (D/P) or importer’s credit risks (D/A).
2) Lower risk: Compared to open consignment of goods, collection is of lower risk as importer has to effect payment or to give its acceptance to exporter before taking delivery of the goods.
3) Easier and simpler documentation : preparation of documents under collection is usually simpler and less tedious as compared with documents required under a documentary credit.
Application Requirements
1) Exporter (beneficiary) must maintain a banking account with us.
2) Exporter to present documents to us for collection together with the Bank’s application form.
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