The documentary collection is a mode of payment in the international trade. In this case the Bank is obliged to receive the funds sent to the latter’s account for the supply of goods or services provided in compliance with the customer’s (seller’s) order or the Bank does not assume any payment obligations, but takes the role of the sender of documents instead.
Documentary collection is a payment instrument whereby the exporter (seller) sends documents to the importer (purchaser) through the bank in order to get payment. The bank does not assume any payment obligation and plays the role of an agent/document remitter only․
Documentary collection is appropriate to use, if you trust your purchasing partner, but you want to control payment for you goods.
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