Export collections
Reduce the risk of late or non-payment
Though not offering the same high levels of protection as letters of credit, export collections can be used where you are confident of the buyer’s willingness to accept the goods and ability to pay.
With export collections, you retain control of the goods until the buyer agrees that delivery has been made. For sight collections, the buyer’s bank settles the payment with your Bank. For deferred payment collections, the buyer’s bank obtains acceptance of the bill of exchange formally acknowledging the debt. This process is carried out through the exchange of documents using the international banking system.
Benefits
- Control - you control the shipping documents until the buyer’s bank makes either makes payment or the the buyer accepts a bill of exchange
- Security - safer than open account trading as you retain ownership and possession of the goods until payment
- Straightforward - document preparation is easy and quick
- Universal governance - subject to URC 522 - globally recognised rules governing collections issued by the International Chamber of Commerce
- Accelerate cash flow - deferred payment collections accepted by your customers can by guaranteed by your customers’ banks and sometimes discounted with us by prior arrangement
- Efficient and secure - Export collections and amendments can be initiated using our online trade channel
