Documentary Collections

More Benefits

• Personal attention – dedicated Business Manager or Business Advisor can make fast decisions
• For the seller
  • Convenience – your bank will act for you to collect the payment using the services of another bank in an overseas country
  • Control – of the documents relating to the goods, which may include documents that give control over the goods. This will usually be protected by the banks involved
  • Reduced risk – lower risk than dealing on ‘Open Account’ or credit terms with a buyer
  • Ease of use – you do not need a bank facility to use Documentary Collections
  • Finance – the seller may be able to get finance for their overseas sales
  • Guarantee – if the buyer and their bank agree, the Bill of Exchange may be accepted by the buyer and by their bank. This is known as an ‘Avalisation’ and gives a bank guarantee of payment
• For the buyer
  • Improved cash flow – you can defer payment for the goods until the documents relating to the goods arrive
  • Security – you will be made aware of the documents that have been submitted before you decide to pay or accept to pay
  • Favourable credit terms – you may be able to get better credit terms from your supplier than if you trade on ‘Open Account’ terms
  • Convenience – you may be able to get finance linked to the Documentary Collection
• Charges will apply

Further Features

• The banks deal in the documents and not the goods themselves. Obtaining the documents does not necessarily guarantee the safe arrival or quality of the goods
• In most cases the bank's attempt to collect the payment but they do not guarantee payment

Complementary Solutions

• Foreign Currency Current Account
• Foreign Exchange

Important Information

• Costs
  • Standard charges can be found in the interest rates and charges section. Other fees may be individually negotiated – speak to your Business Manager or Business Advisor for more details
• Terms and conditions
  • Documentary Collections are handled in most cases subject to Uniform Rules for Collections (URC). These set of rules are produced by the International Chamber of Commerce and is recognised internationally
  • Most banks will expect you to have an account opened before they will handle a Documentary Collection for you
  • Full terms and conditions are available on request

In the event of non payment, breach of covenant, or non compliance with terms and conditions, we may proceed to make a call on, or realise any security pledged in support of the borrowing.

CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.