Documentary Collections

NLB Bank supports its customers in carrying out their business activities through this payment instrument, both in the role of importers, by handing over the collection documents sent by the Exporter against payment, and in the role of exporters, by forwarding the documents of them to the Importer together with payment instructions. In documentary collections, the Uniform Rules for Collection, No. URC 522, 1995 Revision.

Key features of Documentary Collections

They are less complicated and cause less expenses than with other payment or insurance instruments;
They are required in cases where the parties to the contract have good relations and sufficient information regarding each other's business and/or payment capabilities;
The goods become the property of the Importer after the Exporter has been credited for the value of the goods, etc.

Simplified flow of this transaction

The exporter sends the goods to the importer;
The exporter presents the documents together with the instructions on how to make the payment;
The exporting bank forwards the documents to the collecting bank of the importer;
The receiving bank releases the documents to the importer upon receipt of payment;
The importer then presents the documents to the carrier in exchange for the goods.

Documentary Collections

Key features of Documentary Collections

Simplified flow of this transaction

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