Documentary collection is a commonly used method of payment in international trade available to both importers (buyers) and exporters (sellers). Documentary collections assume that the seller presents shipping documents via their bank after shipment of goods, with instruction to send documents to buyer’s bank on a collection basis and clearly instructing whether shipping documents are to be released to the buyer either against payment or against acceptance of a deferred payment bill.
Give suppliers payment assurances as you protect your interests by confirming that goods have shipped according to your specifications before making a payment. You will be able to pay for goods or accept the bill only when you are happy with the shipping documents and improve cash flow with the flexibility to negotiate credit terms with your seller.