Documentary collection

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

(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 directly from a buyer (by presenting documents to the buyer).


Compared with letters of credit (LCs), documentary collections (DCs) are used for smaller transactions, and a smaller total value of transactions.

DC and LC indicative data is summarised below.


Average transaction sizes (US exports)

DCs: US$ 0.1 - 0.2 million

LCs: US$ 0.5 - 1 million


Proportion of world trade in goods

DCs: 1 - 2%

LCs: 10 - 15%


See also


Other link

Trade finance around the world, Centre for Economic and Policy Research, 2016