Documentary Collections

This is another payment method in international trade, particularly when the supplier- buyer relationship is building up and mutual trust is being established. It is easier and quicker to set up and doesn’t entail the expense of a documentary credit i.e. usually lower charges and a lower level of documentation. Essentially the bank collects payment for the seller by delivering documents to the buyer.

The exporter´s bank sends the documents along with collection instructions to the importer´s bank who in turn request payment from the importer. Payment is either made or promised; the promise is normally made by accepting a bill of exchange.

At Bank Pasargad we are prepared to handle documentary collections for both exporters and importers.