Documentary Collection

Documentary Collection acts as a secure bridge between buyers and sellers. We facilitate the exchange of essential commercial and financial documents, ensuring that the buyer only receives the title documents to claim goods once payment is made or acceptance is granted.

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Detail Information

Documentary collection is a process of transferring documents (financial and/or commercial) between banks in accordance with pre-defined arrangements between the buyer and seller. A buyer can receive the goods only after the payment is made or the documents are accepted to be paid on a certain date or under a certain condition in the future. All collections are regulated by the International Chamber of Commerce (ICC) unified rules "URC 522".

Documentary Collection Type

  • Import Documentary Collection
    The Import Bill for Collection is an exporter-initiated method of payment that requires the importer to make immediate or deferred payment. Shipping documents are sent out by the supplier to the Bank and then released to the Importer against payment or a promise to pay at a future date. The documents can be settled against payment (D/P) or against acceptance (D/A).
  • Export Documentary Collection
    The exporter submits all the commercial documents to SBI Ly Hour Bank once the exporter’s goods are shipped. SBI Ly Hour Bank checks the documents and sends for the collection of payment to the importer’s bank. The documents can be settled against payment (D/P) or against acceptance (D/A).

Pricing

1. Import Documentary Collection

NoDescriptionFee Charge
1Inward Collection Handling Fee0.125% Min. USD40
2Inward Collection Settlement FeeUSD40 flat plus cable USD30
3ProtestUSD30 flat plus cable USD30.00

 

2. Export Documentary Collection

NoDescriptionFee Charge
1Outward Collection Handling FeeUSD50 plus courier charge USD50
2Outward Collection Settlement Fee0.15% Min. USD40
3ProtestUSD30 flat plus cable USD30

Benefits

  • You retain control over your goods (via title documents) until the buyer pays or legally accepts the payment terms.
  • A more affordable alternative to Letters of Credit (L/C), reducing banking fees while still offering a level of bank involvement.
  • Transactions are governed by the "Uniform Rules for Collections," ensuring a standardized and predictable process regardless of your partner's country.
  • Generally simpler and faster to arrange than a Letter of Credit, helping speed up the trade cycle.

Request Form

  • To help you get started quickly, we have provided all essential Trade Finance application forms here. Simply download and complete the relevant documents to initiate your trade services efficiently.
    • Documentary Collection and/or LC Negotiation Form (Click to Download)

For More Information

  • Visit our nearest branch to speak with our staff directly.
  • Contact our Call Center for Guidance and Support via Facebook Page or call: 023 980 888 / 093 671 111

Terms and Conditions

  • Terms and conditions are subject to change at the discretion of the Bank without prior notice to the Customer.

Related Trade Finance Services

Letters of Credit
Bank Guarantee
Documentary Collection
Trust Receipts