Documentary Collection of export-related payments

The collection of export-related payments generally works as follows:

After shipping the goods to the designated buyer, you pass to us the documents – such as invoice, transport and insurance papers – with special instructions for their use. We will send these to the foreign bank with the instruction to surrender the documents only on payment of the collection value or on acceptance of the bill of exchange – depending on your instructions. After your instructions have been carried out, the foreign bank will make the documents available to your business partner. Subject to the goods being addressed to the foreign bank, they will subsequently be released to the buyer who can then dispose of the goods with the transport document (bill of lading).

The collection of export-related payments is easier to handle and less expensive than an export letter of credit. From your point of view as an exporter, however, the collection method does not provide you with a guaranteed payment, since the buyer is not obliged to accept the collection.