Documentary collection

 

The Documentary collection is an internationally accepted payment form which - in contrast with the letter of credit - doesn’t contain payment obligation of the bank. In the frame of a collection order the exporter presents documents and gives a prompt or deferred payment collection instruction to the Bank collecting the counter value of the presented documents.
The importer by accepting the collection order gives instructions to its bank to perform the payment.
UniCredit Bank transacts both export and import documentary collections.

 

Why is it advantageous?

• this payment method offers considerably less security compared to the letter of credit, but it is simpler, cheaper and requires less administration
  
• the importer’s willingness of payment will be increased by the bank’s involvement
  
• collateral must not provided beforehand
  
• provides an adequate security for the seller against the risk of getting out of possession if bill of lading is involved or if the buyer will only get the right of disposal of the goods after the payment is fulfilled 
  

 

We recommend

• if your information about your trading partners are incomplete
  
• if you as a seller would like to have a safer method of payment than a simple transferring of money
  
• if you export to a politically and economically stable country

 

The types of documentary collection

• documentary collection, C.A.D. (cash against documents) – payment against documents
  
• “clean” documentary collection – only payment documents will be submitted, no other commercial documents are included
  
• open documentary collection – the seller delivers the goods directly to the buyer’s address
  
• “Right of disposal against payment” collection - the buyer will only get the right of disposal of the goods after the payment is fulfilled  
  
• sight collection: D.P. (Documents against payment) - The bank is authorized to fulfill payment against the documents
  
• Deferred payment documentary collection, D/A (Documents against acceptance) - The bank releases the documents to the buyer against the acceptance of a bill of exchange.

 

If you are interested in our products, please feel free to ask your contact person at the bank, or contact the Trade Finance Department of our bank on tradeservices@unicreditgroup.hu email address or  on the +36 1 301 1404 phone number.

UniCredit Bank Hungary Zrt.

 

This information should not be considered an offer. The Bank reserves the right to change the conditions.