Export Documentary Collections Is Crucial To Your Company: Learn Why!

When your business opts for documentary collection as a method of payment, the importer’s bank gets the control. They tackle the shipping documents that ensure entry of the delivered goods. And, here begins the role of the Export Documentary Collections. The processing of the export documents gets written according to the instructions. Then the exporter receives it and dispatches it to the bank of foreign buyers. The buyer makes the payment for the delivery of documents.

Export Documentary Collections

The Relevant Details On the Export Documentary Collections

There are two types of Documentary Collections:

  • Documents Against Payment – D/P
  • Documents Against Acceptance – D/A

From here we can categorize other two payment options, that you can use for business:

  • Export Documentary Collections
  • Import Documentary Collections

Today, we will discuss the advantages of Export Documentary Collections. 

The Export Documentary Collections provides the exporters with alternative commercial trade transactions to letters of credit. When you deliver the products to the importer, the non-financial institutes or other bodies tackle the custody of the documents. They will take care of the title documents until receiving the payments and expectancy from the importer.

You can do the transactions sitting from a different country. But, wherever they originate, it will not take long to complete. You will receive the amount to your account within 24 hours. It provides you access to your money as early as possible.

The Advantages of Using Export Documentary Collections

Export Documentary Collections include multiple advantages. And, they are:

  • It controls and manages the export receivables.
  •  Monitors excellent collections.
  • Knows the correct time of making the payment. 
  • Enhances the reconcilement and administration of your export businesses.

However, in the Export Documentary Collection, the bank will not take care of the financial and country risks. It happens only with letters of credit. If you are comfortable handling the risk, the Export Documentary Collection can be the best cost-effective option for you.

How Do Export Documentary Collections Work?

The Export Documentary Collection contributes a lot to your trading business. But, it poses some risks, but you can overcome them with your confidence and professional guidance. So, let’s focus here:

  1. The Export Documentary Collection is a payment procedure where receives the payment from the importer through the intermediary bank. It offers facilities with the flow of title documents and payment. 
  2. The exporter’s bank seeks a payment, for the exporter from the importer. They send a title document and cover letter to the bank. 
  3. The importer guides the importer about the bill. When the importer pays the bill, the exporter’s bank receives a payment. As soon as the exporter’s bank receives the payment, it quickly credits that amount to the exporter. To make the process faster, you can use electronic transmission transaction details.

Hire the Professionals

Need help with Export Documentary Collection? RNR Trade Corporation Company Limited (RNR) is here. It is a Non-Bank, Trade and Financial Consultancy that offers guidance and assistance with businesses. Visit rnrtradecorp.com today!

Location: Thailand

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