Collection

Collection - a service that is used by the exporter. Exporter asks the bank to act as a collecting agent for payments on the foreign market. The exporter's bank will use the services of one of their foreign correspondent banks or bank specified by the client to obtain on behalf of the payments received from the importer.

In this case, the documents relating to export transactions, such as invoices, shipping documents and insurance documents provided exporter to the bank with instructions to hand over documents to the importer's bank overseas. Instruction will include an indication of how the documents should be transferred to the importer. Documents may be submitted against not slow payment (the "under demand"), as D / A (documents against payment), or against acceptance bills, as D / A (documents against acceptance).

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