Documentary collection
Settling trade transactions
Documentary collection
Settling trade transactions
Documentary collection is recommended for:
- companies specializing in local or foreign trade
- suppliers/exporters and recipients/importers
Documentary collection is used as a form of settlements of local or foreign trade transactions.
The most important features of the product
- documentary collection is recommended in order to make payment in favour of the supplier/exporter (drawer) for commercial documents confirming the compliant delivery of goods/services
- documentary collection is instructed by the supplier/exporter (drawer) by sending commercial documents together with a collection instruction to the drawee’s bank
- the drawee may receive documents if the conditions described in the presenting note are met
- decision to make payment for documents is made by the recipient of goods/services (payer/drawee/importer)
- documentary collection protects:
- the supplier, who controls shipped goods until the documents are released to the payer
- the payer – the type and content of commercial documents confirm the existence and shipment of goods and certificates confirm those characteristics of goods which the payer considers vital
Direct presentation
Direct Presentation is a possibility to present scans of the documents under export documentary collection through a Citi Trade Portal (CTP) platform, without the need to send the original commercial documents to Citi Handlowy.
Direct Presentation is a service that can be used by the supplier – the ordering party (drawer) of export collection.
More information on Direct Presentation in the attached leaflet.
Are you interested in our offer?
Please contact your Relationship Manager. Detailed information can be also obtained from:
Benefits
- Supplier will receive the amount due for commercial documents after it is collected from the payer
- Payment is made within terms specified by the supplier in his instruction: after submitting of documents (“at sight”) or on a deferred payment term
- Drawer keeps goods under control until commercial documents are released to the payer
- Commercial documents will only be released to the payer after he meets the conditions of collection specified by the supplier
- Drawer has a higher probability that he will receive payment for delivered goods (as compared with non-conditional payment methods)
- Simplified procedure of enforcement of receivables due from the payer when in documentary collection occurring also bills of exchange/promissory notes in which the payer is the debtor
- Drawer may demand for additional payment security in the form of a bill’s payment guarantee (aval of the drawee’s bank)
- Properly defined documents which should be submitted by the supplier for collection:
- confirm the existence and shipment of goods to the payer
- ensure that appropriate goods (i.e. having required characteristics, volumes, quality and delivery dates) will be delivered
- faster receipt of payment
- increasing transaction transparency and process efficiency
- elimination of costs of sending original collection documentation to Citi Handlowy
Additional information
We recommend our Clients (both exporters and importers) that before choosing documentary collection as settlement of transaction they should read the "Uniform Rules for Collections,” published by the International Chamber of Commerce as publication URC 522.
Downloads
Below you will find requests / orders in pdf
- Ordering the Direct Presentation service
- Collection order (documentary collection), which are accompanied by commercial documents and financial, if applicable (e.g. commercial invoice, transport document, insurance document, quality/quantity/health certificate and others)
or - Clean collection order (clean collection), which are accompanied by financial documents (promissory note issued by drawee/payer or bill of exchange accepted by drawee/payer)