KBC receives a set of commercial documents from your supplier’s bank abroad, possibly accompanied by financial documents. In accordance with the collection instructions, KBC must issue the documents to the importer in return for payment (documents against payment), acceptance of the bill of exchange (documents against acceptance) or acceptance of an avalised bill of exchange (documents against acceptance and avalisation).
Documentary collection requires less complex administration than documentary credit.
You have more security than with a standard invoice. The customer cannot get hold of the documents if it has not made payment or accepted the bill of exchange.
Documentary collection is a cheaper solution than documentary credit.
Import documentary collection
Cheaper payment method with simpler and more limited administration than an import documentary credit.
Export documentary collection
The exporter instructs KBC to issue a set of commercial documents to the foreign importer, possibly accompanied by financial documents, in accordance with the collection instructions (documents against payment), acceptance of a bill of exchange (documents against acceptance) or acceptance of an avalised bill of exchange (documents against acceptance and avalisation).
- In the event of default or non-acceptance, the customer will not receive the documents, and will therefore not be able to complete the customs and accounting formalities. In that case, in the case of maritime transport the importer will in principle not even be able to receive the goods (with the offer of a full set of bills of lading made out to order and blank endorsed).
- Cheaper payment method with simpler and more limited administration than an irrevocable export documentary credit.
If you would like to use documentary collection in your international trading, please contact your KBC relationship manager.
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