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Documentary collection


Documentary collection is a way of settlement, where the exporter, through its bank,
provides the importer with financial and (or) commercial documents in exchange
for payment against them or for acceptance of a promissory note (assumption of
obligation to pay). The importer, after payment in accordance with the above-
mentioned documents or acceptance of the promissory note, gets the above-
mentioned documents from its bank, and acquires ownership of the goods.


Performing the documentary collection procedure the Bank does not provide any
payment guarantee, but it controls the settlement process, documents, and assists
in their payment. 


A documentary collection scheme

  • The seller and the buyer enter into an agreement, which provides for
    settlement by means of documentary collection.
  • The seller ships goods to the buyer.
  • The seller submits to its bank the documents in accordance with the
    conditions of the documentary collection.
  • The seller's bank sends the documents to the buyer's bank.
  • After payment of the buyer in accordance with the above-mentioned
    documents or assumption of obligation to pay for them (after acceptance
    of a promissory note) the bank releases the documents to the buyer.
  • The buyer's bank transfers the funds to the seller's bank.
  • The seller's bank credits the amount to the seller’s account.


This method of settlement is mostly used when:

  • the buyer is unwilling to effect advance payment , whereas the seller 
    disagrees with payment for goods only after the buyer has received the goods,
    yet it does not require such an obligation from the bank as a letter of credit;
  • the partners trust each other; the seller has no doubts about the buyer’s
    solvency or the buyer’s intention to pay for the goods;
  • the political and legal system  in the buyer's country is stable;
  • there are no restrictions in the buyer’s country on currency exchange or import
    of goods;
  • the buyer has obtained all the required permits for the import of goods.


How to make use of a documentary collection service?

If you have decided to make use of a documentary collection service, please
call the information line and arrange for a meeting with a Bank specialist
or fill in the application and arrive at the nearest Bank's branch,
customer service centre or subdivision  for a consultation.



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