Export Documentary Collection

Export Documentary Collection means the processing, in compliance with written orders, of export documents obtained by the exporter and sent to the foreign purchaser's bank in order to obtain payment from the purchaser upon delivery of the documents or at the predefined maturity of the documents. RNR Trade Corporation Company Limited (RNR) consults with documentary collections to the traders.



What is Export Documentary Collection?

  1. 1. The exporter ships the products to the purchaser and delivers the documentation concerning the goods and their shipping to the bank, such as the Commercial Invoice, Bill of Lading, Freight Insurance, etc., followed by instructions for collection. The exporter shall indicate in the Collection Instruction the complete details of the international buyer (the Drawee), the buyer's bank (the Collecting Bank), the brief description and the value of the products exported, the complete description and the value of the documents submitted, according to the form and number and conditions under which the documents are to be transferred to the Drawee.
  2. 2. In compliance with the collection instructions, UCB processes and transmits the documents to the collecting bank, which is normally the buyer's bank, for processing and distribution to the buyer. Depending on the orders, the Collecting Bank or Presenting Bank shall, upon payment of its value, or against acceptance/written undertaking for payment at maturity or without payment, release the documents to the Drawee.
  1. Under Export Documentary Collections, the bank receives and transmits documents only in compliance with the instructions provided by the exporter as to how the documents should be processed, without assuming any duty to pay the exporter. The payment of documents sent on the basis of collection depends only on the goodwill and creditworthiness of the buyer.

Full supervised export documentary collection process

We forward your export documents to a bank in the buyer's country as part of our export documentary collection process. When payment terms and conditions are met, the records are then issued to the buyer.

  • Offers from our process:
  • Availability in most important currencies
  • A solution that is more cost effective than a documentary credit
  • Flexibility - making it possible to take advantage of market dynamics that fluctuate
  • Monitoring the method of collection for you from the submission of your documents to the receipt of payment
  • Stipulate the terms and conditions of payment
  • You receive payment when we receive revenue from the bank of your buyer.
  • You have an alternate payment form for an export documentary credit.
  • Issued on the basis of 'sight' or 'word'. 'Sight' means that draughts for immediate payment are drawn,' duration' means that draughts are drawn on a term payment basis, e.g. 30 days after sight, 90 days from bill of lading.

Understand some of the risks

·         The default risk of payment is greater than that of a documentary credit, because the buyer can decline payment at any time.

·         Disputes over terms and conditions may result in delayed payment or non-payment after you ship your goods.

·         Unplanned expenses can occur if payment is delayed or defaulted by the buyer.

·         Since this has been prepared without taking into account your goals, financial condition or needs, you should consider its suitability for your circumstances before acting on the results. Applications are subject to ordinary credit approval by the Bank. There are fees and charges payable.


How to Apply for the Service?

Please consult RNR Trade Corporation Company Limited (RNR)’s Trade Finance Advisory Unit to get more information. Call us @+66 6-4324-5456

 

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