Collections

Collections are a universally recognised method for settling overseas trade debt through the international banking system, offering some security of payment, though no guarantee.

Export Collections (also known as Outward Bills) are sent on your behalf as the seller to the bankers of the overseas buyer. They can enable the seller to maintain control of the goods pending payment or acceptance of the debt by the buyer.

Import Collections (often referred to as an Inward Bills or Inward Collections) are sent to the Bank by the bankers of the overseas seller, in your favour as the buyer. The seller maintains control of the goods pending payment or acceptance of the debt by the buyer.

Key features:

• Collections are subject to the globally recognised rules issued by the International Chamber of Commerce, known as Uniform Rules for Collection
• Export Collections can be initiated electronically via your office PC by using our Roytrade system and sent directly to the overseas bank

Benefits

• Provide an element of security over open account trading
• Are simpler and cheaper than Letters of Credit but not as secure

Please read the important legal information.