Other Products

Instead of sending documents direct to the overseas buyer on open account, an exporter can choose to send documents through the bank as a Bill for Collection (BC)

Export documents are given to the bank to send to our local office or a correspondent in the country/city where the importer is situated. The collecting bank will endeavour to obtain payment and/or acceptance on behalf of the exporter

BCs can be DP (Documents against Payment) or DA (Documents against Acceptance):

For DP Bills, the collecting bank will deliver the shipping documents against payment of the bill amount

For DA Bills, the collecting bank will release the documents to the importer against a legally recognised written undertaking to pay the amount due on an agreed determinable date

Collections offer a simple and cost-effective means of trading

Risk reduction: As collections are governed by Uniform Rules for Collections 522, responsibilities of different parties, interest and expense issues are clearly defined

The collecting bank can also protest a non-payment or non-acceptance of the bill as requested on behalf of the exporter. The collecting bank will also be able to keep the exporter up-to-date with the latest status of the bill so the exporter does not need to rely solely on the word of the buyer

This is a more secure trading method than open account/payment in advance terms, but less secure than using a Documentary Credit (see section on Documentary credits - Export)

Target customers

• All parties involved in trading
• Cross-sell opportunities/tips
• Foreign exchange services
• Deposits services: Time deposits

Trade finance products

• Trade services: Documentary credits - Export
• Trade services: Factoring
• Trade services: Forfaiting
• Trade services: TradeAdvance - Post-shipment
• Trade services: TradeCollect
• Trade services: TradeSafe
• Trade services: TradeSolutions - DCs

PCM services

• Trade and credit information services