Methods of Payments Cash in Letter of Documentary Open Advance Credit Collections Account Most Advantageous to the Exporter Most Advantageous to the Importer.

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Methods of Payments Cash in Letter of Documentary Open Advance Credit Collections Account Most Advantageous to the Exporter Most Advantageous to the Importer

The handling by banks, on instructions received, of documents in order to:  Obtain acceptance and/or payment  Deliver commercial documents against acceptance and/or against payment  Deliver documents on other terms and conditions DOCUMENTARY COLLECTION

 To provide advice  Review transactions, country information, business customs  To provide financing  Supporting sales, purchases and investments  To mitigate risk  Country Risk & Commercial Risk What is the Bank’s Role?

Documentary Collections Advantages to the Exporter  Seller retains title to goods until payment or acceptance  Relies on banks to collect payment from buyer