Suisse Credit Capital Limited NZ facilitates international trade transactions by providing a documentary collection facility.
A documentary collection is an instruction from an exporter (seller or supplier) to a remitting bank (usually the exporter’s local bank) to collect payment immediately, or at a future date, from an importer (buyer) against delivery of the relevant commercial documents.
Documentary collections are of two forms:
1. Document against payment (DP) – Sight Documents
2. Document against acceptance (DA) – Term Documents
Acceptance is signified by the Importer's signature on the Bill of Exchange or other payment authority enclosed in the Collection. Payment will be made at a fixed or determinable future date.
Benefits of Using Documentary Collection
► The simplicity of the operation makes documentary collections a convenient way to receive payment from an importer
► The exporter is relieved of the administrative burden of collecting the proceeds, handling correspondence and any follow-up action
►Control over the goods is maintained until the importer pays or accepts the financial instrument
►The exporter can ask the collecting bank to sign as surety on the financial instrument, thereby obtaining a guarantee of payment independently of the importer