When the buyer’s creditworthiness is acceptable, an Export Documentary Collection may be just what you’re looking for. A Documentary Collection provides for orderly passage of title against payment. It usually consists of a sight or time draft drawn on an importer, accompanied by other documents and instructions. To ensure proper payment, the buyer does not receive the title and shipping documents until the goods are paid for (sight draft) or the buyer agrees to pay for them at a later date (time draft).
Collecting payments can be intricate and time-consuming, which means delayed payments to your company. An Export Documentary Collection greatly accelerates the process and features the following benefits:
- assures prompt and trouble-free payments from your foreign customers
- provides a means of securing title to the goods being shipped until the buyer makes payment
- it is less expensive than a Letter of Credit
