Documentary collection: Difference between revisions
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imported>Doug Williamson (Expand following discussion with Paul Cowdell MCT FCIB, 30 July 2105.) |
imported>Doug Williamson (Expand and add links. Source: Voxeu.org Trade Finance Around the World http://voxeu.org/article/trade-finance-around-world) |
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(DC). | |||
An international payment method that processes the collection of a draft and accompanying shipping documents through international correspondent banks. | An international payment method that processes the collection of a draft and accompanying shipping documents through international correspondent banks. | ||
A documentary collection is a structure under which a bank collects payment from a buyer, by presenting documents to the buyer. | A documentary collection is a structure under which a bank collects payment from a buyer, by presenting documents to the buyer. | ||
Compared with letters of credit (LCs), documentary collections are used for smaller transactions, and a smaller total value of transactions. | |||
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* [[Documents against payment]] | * [[Documents against payment]] | ||
* [[Draft]] | * [[Draft]] | ||
* [[Letter of credit]] | |||
* [[Remitting bank]] | * [[Remitting bank]] | ||
Revision as of 11:31, 12 June 2016
(DC).
An international payment method that processes the collection of a draft and accompanying shipping documents through international correspondent banks.
A documentary collection is a structure under which a bank collects payment from a buyer, by presenting documents to the buyer.
Compared with letters of credit (LCs), documentary collections are used for smaller transactions, and a smaller total value of transactions.
