A documentary collection is a payment instrument where bank costs are lower than those incurred for a letter of credit, but the risk of non-payment is accordingly higher.

The collection entails the processing of financial or commercial documents in accordance with instructions received from the exporter’s bank and delivering them to the importer in return for payment or acceptance.


For the importer

  • A collection helps the importer minimise the risk of the exporter not fulfilling the delivery terms.
  • In import documentary collection, the importer can review the documents received before payment.
  • Lower costs than for an import letter of credit.

For the exporter

  • They provide certainty to the exporter that the documents will be delivered to the importer upon payment or acceptance.
  • Lower costs than for an export letter of credit.