Collections

Documentary and clean collection

Collection is a form of payment that enables a bank's clients, upon presenting required documents, to receive/carry out a payment or to receive confirmation that a payment will be received/made within a specified period of time.

Collection can be documentary, that is, requiring commercial documents of clients (invoices, shipping documents and goods certificates). Financial documents like bills of exchange, ordinary bills, checks, etc. do not necessarily have to be supplied.

Collection can also be clean, that is, requiring only financial documents.

Documentary collection has an advantage over conventional bank transfer because it is strictly defined and governed by the International Chamber of Commerce Uniform Rules for Collections. Documentary collection is also simpler and less costly than documentary letter of credit.

Importers should bear in mind that exporters may retain control over the goods until the payment is made (provided that they have a full set of bills of lading).

Exporters should remember that the bank's role in this case is limited because there is no payment guarantee from an importing bank. Therefore, collection should be used in transactions with solvent buyers only.

EVROFINANCE MOSNARBANK offers a full set of services related to documentary collection:

• Receiving, examination and sending documents for payment/acceptance;
• Issuance of documents against payment/acceptance;
• Return of documents in case the payer voids payment/acceptance;
• Additional presentment of collection order for payment/acceptance;
• Changing or voiding collection order and its terms;
• Return of incorrectly filled collection orders back to exporter bank;
• Storing bills.

Clean collection:

• Presentment of financial documents for payment/acceptance;
• Issuance of financial documents against payment/acceptance;
• Receiving, examination and sending financial documents for collection;
• Protesting in case failure to carry out payment/acceptance;
• Return of unpaid financial documents.

EVROFINANCE MOSNARBANK complies with the effective edition of the Uniform Rules for Collection (published by the International Chamber of Commerce), international business customs and practices and the effective Russian law on currency control.