Documentary collection – the form of payment according to which bank carries out the intermediary function to transfer the documents confirming shipment of the goods to buyer against the payment or on other conditions.
the easiest and cheapest type of settlements among all tools of carrying out of settlements
reliability of settlements - the documents will be transferred to the buyer only against payment
advantageous form of settlements for permanent partners with a certain degree of confidence
The bank is acting only in accordance with the instructions contained in the collection order and does not bear its own obligations (unlike a documentary letter of credit) to make a payment in favor of the seller.