It is a service rendered by the Bank to handle and deliver commercial documents and other documents as instructed by instructing party (Collecting Bank/Seller or Drawer).
There are two (2) types of Documentary Collection-i :
- Outward Documentary Collection-i/ Seller or Exporter
- Inward Documentary Collection-i
- Documents Against Payment (D/P) - Collecting Bank shall release the documents to the Buyer/Drawee in exchange of payment.
- Documents Against Acceptance (D/A) - Collecting Bank shall release the documents to the Buyer/Drawee in exchange of accepted Bill of Exchange / Letter of Undertaking to pay at a determinable future date.