Documentary collection
From ACT Wiki
(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.
See also
- Cash against documents
- Collecting bank
- Commercial risk
- Correspondent banking
- Documentary credit
- Documents against acceptance
- Documents against payment
- Draft
- Letter of credit
- Remitting bank
Other link
Trade finance around the world, Centre for Economic and Policy Research, 2016
