Documentary Collections

More Benefits

• For the seller
  • Convenience – your bank will act for you to collect the payment using the services of another bank in an overseas country
  • Control – of the documents relating to the goods, which may include documents that give control over the goods. This will usually be protected by the banks involved
  • Reduced risk – lower risk than dealing on ‘Open Account’ or credit terms with a buyer
  • Ease of use – you do not need a bank facility to use Documentary Collections
  • Finance – the seller may be able to get finance for their overseas sales
  • Guarantee – if the buyer and their bank agree, the Bill of Exchange may be accepted by the buyer and by their bank. This is known as an ‘Avalisation’ and gives a bank guarantee of payment
• For the buyer
  • Improved cash flow – you can defer payment for the goods until the documents relating to the goods arrive
  • Security – you will be made aware of the documents that have been submitted before you decide to pay or accept to pay
  • Favourable credit terms – you may be able to get better credit terms from your supplier than if you trade on ‘Open Account’ terms
  • Convenience – you may be able to get finance linked to the Documentary Collection 

Further Features

• The banks deal in the documents and not the goods themselves. Obtaining the documents does not necessarily guarantee the safe arrival or quality of the goods
• In most cases the bank's attempt to collect the payment but they do not guarantee payment

Complementary Solutions

• Foreign Currency Current Account
• Foreign Exchange

Important Information

• Charges apply for Documentary Collections. Standard charges can be found in the interest rates and charges section. Other fees may be individually negotiated – speak to your local Agribusiness Partner for more details
• Documentary Collections are handled in most cases subject to the Uniform Rules for Collections (URC). This set of rules is produced by the International Chambers of Commerce and is recognised internationally
• Most banks will expect you to have an account opened before they will handle a Documentary Collection for you 

In the event of non payment, breach of covenant, or non compliance with terms and conditions, we may proceed to make a call on, or realise any security pledged in support of the borrowing.

CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.

*This service may be temporarily unavailable during periods of routine maintenance.