We receive the trade documents with collection terms from your supplier’s bank. We then send the collection to you. Finally, you receive the documents if you pay immediately or accept a time bill of exchange. (Take a look at the frequently asked questions for more information about bills of exchange.) This depends on the collection conditions. In most cases, you will not have to pay anything until the goods have shipped.
For you as an importer, having the trade documents does not say anything about their content or the quality and quantity of the goods supplied. So a Documentary Collection doesn’t always guarantee correct delivery for the importer.
If you’re looking for even greater security, a Letter of Credit might be the right option for you. You can use it to demand a pre-shipment inspection certificate, for example.
For more information, call our Trade Finance Operations on +31 (0)10 402 54 44 (local rates apply).
