By providing documentary collection service we help seller and buyer to execute a commercial transaction through a secure payment instrument
as a seller, you can be more confident of payment than with basic wire transfers
as a buyer, you do not need to tie up funds ahead of time and you can be more confident of delivery than when paying in advance
documentary collection is cheaper than a documentary letter of credit
administration is easy
It is a simple payment instrument under which, in accordance with the seller’s instructions, we ensure that the commercial documents for a consignment (for example, invoices or transport document) are released to the buyer only after payment of the due receivable.
Documentary collection from Komerční banka
it is a payment instrument that can be used in domestic and international trade,
traditionally, it has been used widely in international trade,
it ensures that the documents under delivery of goods or services are released to the buyer only subject to meeting the conditions set by the seller when arranging collection (usually, the documents are released against payment),
it is beneficial for the buyers because they need not commit funds in advance,
it is cheaper than a documentary letter of credit.
When to use documentary collection
- if there is no need for the bank to guarantee payment on behalf of the buyer. This is the case if you have no doubt about your business partner’s ability and willingness to pay for the goods or services,
- if you want assurance that the other party will not get access to shipment documents or goods themselves without paying,
- if the political, economic, and legal environment in the buyer’s country is considered stable.
How it works
- as the seller, you submit an order for documentary collection to the bank together with commercial documents on the shipment or a bill of exchange,
- the bank ensures that these documents are released to the buyer subject to meeting the collection conditions, usually after payment or acceptance of a bill of exchange,
- documentary collection does not commit the bank to guarantee payment on behalf of the buyer.