Documentary Collection-way of implementation trade operations in which
there is a transfer of export documents to merchant on behalf of the seller's
bank in order to receive the payment.
Customer can receive documents only after making the payment (Documents against Payment) or after the obligation to pay for goods at a definite time (Documents against Acceptance). Only after reception of accompanying documents buyer can receive the goods and make customs clearance.
Documentary collection is the cheapest of Bank's provided trade financing operation services, but in some cases, documentary collection does not provide the same level of security as a letter of credit.
Unlike the letter of credit, in the case of documentary collection, the Bank is not obliged to make payment, because buyers Bank after receiving the of documentary collection can withdraw money from buyer account and make payments only with his consent.
Order of receiving the Documentary Collection:
- you must open a current account in Latvijas pasta banka;
- bank receives the documents from the seller's bank, and notifies the Customer.
More information about the documentary collection may be obtained by contacting the Credit Department at +371 6 777 2 999 or in person at the head office of the Bank.