Documentary collection

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Revision as of 11:54, 12 June 2016 by imported>Doug Williamson (Amend link.)
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(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


Other link

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