Documentary Collection

Documentary collection is a method of payment in which the seller sends the documents related to the sale of goods to the buyer through a bank. The bank acts as an intermediary and is responsible for collecting the payment from the buyer.

The seller sends the documents to the bank, along with a letter of instruction. The letter of instruction tells the bank what to do with the documents and how to collect the payment. The bank then sends the documents to the buyer.

The buyer is responsible for paying the amount due on the documents. The buyer can pay the amount due by:

* Drawing a check on their account and sending it to the bank.
* Wiring the money to the bank.
* Paying the amount due in cash at the bank.

Once the bank receives payment from the buyer, it releases the documents to the buyer. The buyer can then use the documents to take possession of the goods.

Documentary collection is a safe and secure method of payment. The bank acts as an intermediary and is responsible for collecting the payment from the buyer. This protects the seller from the risk of non-payment.

Documentary collection is also a flexible method of payment. The seller can choose the documents that they want to send to the buyer. This gives the seller control over the terms of the sale.

Documentary collection is a common method of payment for international transactions. It is a safe and secure way to ensure that the seller gets paid for the goods that they sell.