The documentary collection is a means of settlement when a seller, having forwarded the goods, presents commercial and/or financial documents through a bank for the buyer to pay/accept them. Having paid the commercial documents (invoices, transportation documents, certificates, etc.) or having undertaken to pay the financial documents (having accepted a draft), the buyer receives them from the bank and acquires the right to the goods.
When does the bank release the documents to the buyer?
When is it advisable to secure payment by means of a documentary collection?
How does settlement by documentary collection work?