Definition
A trade payment method where the exporter's bank forwards shipping documents to the importer's bank, which releases them to the importer only against payment (documents against payment) or acceptance of a bill of exchange (documents against acceptance). Unlike a letter of credit, the banks do not guarantee payment; they act only as intermediaries. It is governed by the ICC's URC 522 rules.
Frequently asked questions
What is Documentary Collection?
A trade payment method where the exporter's bank forwards shipping documents to the importer's bank, which releases them to the importer only against payment (documents against payment) or acceptance of a bill of exchange (documents against acceptance). Unlike a letter of credit, the banks do not guarantee payment; they act only as intermediaries. It is governed by the ICC's URC 522 rules.
Which glossary terms are related to Documentary Collection?
Documentary Collection is a procurement term in the South African import/export industry. Related terms in the same area include Advance Payment, Bank Guarantee, CSD (Central Supplier Database), Designated Sectors, Forex Hedging — each has its own plain-English definition in the TradeCaravan glossary.