Documentary Collections

Documentary Collections Overview

What is Documentary Collection?

Documentary collection is a process in which the bank acts as a channel for documents but does not guarantee payment. SterSavings would act as the agent for the seller (exporter), presenting documents to the buyer (importer) through that party's bank and in exchange receives payment of the amount owed, or obtains acceptance of a time draft for payment at a future date.

How it works as an Exporter

  • Your goods are shipped and your documents are presented to SterSavings
  • SterSavings then sends these documents to a correspondent bank or directly to the buyer’s bank
  • The correspondent bank or buyer's bank then releases the documents against Payment (D/P), typically used with sight payments, or, the documents against Acceptance (D/A), typically used with terms
  • After the importer pays our correspondent, the funds are wired to SterSavings and credited to your account


How it works as an Importer

  • You instruct your vendor to send the Documentary Collection letter and all related attached documents to SterSavings
  • Upon receipt, SterSavings contacts you and makes arrangements to sign the acceptance or sight draft
  • Then, SterSavings forwards the original documents to your company or freight forwarder to facilitate customs clearance and delivery as per your instructions
  • Upon the due date, we contact you requesting payment and upon your confirmation, pay the vendor’s bank for credit to your supplier

Additional Information

  • Documentary Collections are subject to Uniform Rules for Collections (URC 522) published by the International Chamber of Commerce (ICC): SterSavings subscribes and adheres to all ICC guidelines
  • We allow you to issue, track and report your import and export Document Collections activity online through SterSavings e-Connect Global®

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