Documentary Collections
Securing your payment with peace of mind
Use the services of banks worldwide. Documentary Collections from Clydesdale Bank allow you to pay or be paid for goods securely. The seller ships the goods and hands the documents to their bankers requesting they collect payment. The banks in the seller’s and buyer’s countries work together to try to ensure that the documents are not released until payment has been made or the buyer has promised to pay.
- Protection for both buyer and seller
- Lower risk for all involved
- Convenience of knowing everything is taken care of
To start a new kind of banking relationship, arrange a visit to your local Financial Solutions Centre or call 08457 03 45 67.
More Benefits
- Personal attention – dedicated Relationship Partner can make fast decisions
- 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
- Charges will apply
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
Important Information
- Costs
- Standard charges can be found in the interest rates and charges section. Other fees may be individually negotiated – speak to your International Trade Partner for more details
- Terms and conditions
- Documentary Collections are handled in most cases subject to 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
- Full terms and conditions are available on request
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.
Clydesdale Bank PLC is authorised and regulated by the Financial Services Authority. Credit facilities other than regulated mortgages are not regulated by the Financial Services Authority. Clydesdale Bank PLC, Registered in Scotland (No. SC001111), Registered Office: 30 St. Vincent Place, Glasgow, G1 2HL. A member of the National Australia Bank Group of companies.