Grecinieku 6, Riga, LV- 1050, Latvia
Phone: + 371 6 7000 444
Documentary collection is a method of effecting payment whereby the collecting bank (acting as the seller’s agent) undertakes to collect payment from the buyer against the presentation of commercial documents and then transfer the money to the customer.
The seller ships goods to the buyer and presents a documentary collection which comprises a set of commercial and /or title documents to its bank (collecting bank). The seller’s bank forwards commercial and/or title documents together with the accompanying collection letter (collection order) to the buyer’s bank. The buyer’s bank hands over shipping and title documents (required for taking delivery of the shipment) to the buyer against payment (D/P) or acceptance (D/A).
The seller can feel completely safe using this payments mechanism because title documents will be released to the buyer only upon receipt of payment.
Unlike in documentary credits, the banks involved in a documentary collection are not obligated to verify compliance with the terms and conditions of the transaction. Hence, they cannot eliminate the risk of non-payment. However, the method provides ease, simplicity, and cost effectiveness.
|Taking up a collection order
||0,20% of the amount (min. USD 100)|
|Amendment to a collection||USD 50|
|Revocation of a collection||USD 50|
|Delivery of documents against payment/acceptance||0,20% of the amount (min. USD 100)|
|Delivery of documents without payment||USD 100|
|Return of documents||USD 50|
|Sending of additional SWIFT message upon request of the client|| USD 50|
SWIFT messaging fees are included in the Fee Schedule. Additional fees include: courier delivery service fee (actual expenses incurred) and correspondent bank fees, if applicable.