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Documentary Collections
A supplier may be confronted with circumstances, in which it cannot obtain advance payment, while having a track record with its customer. In such situations, an alternative approach from supplier's point of view is to structure the export on a documentary collection basis. When this mode of payment is preferred, the supplier submits the required documents to the remitting bank, which in turn remits such documents to the collecting bank. The collecting bank releases subject documents to the buyer only against payment or the Buyer's acceptance of the accompanied bill of exchange prepared by the supplier.
In case such payment or acceptance is not made by the buyer, the presented documents, which usually include the title documents, shall not pass to the buyer, and the subject documents may be requested back by the remitting bank upon the instruction of the supplier.
Trade & Commodity Finance Teams together with Documentary Collections experts of GarantiBank International NV are not only providing straight-forward Documentary Collection services but also mobilizing fast, accurate and tailor-made banking solutions built in and around such Documentary Collections.
