What is collection?
Collection is an international payment instrument which means that banks provide the documents necessary to gain access to goods, and in return receive liquid funds or instruments of debt. It can be compared to a standard cash on delivery system.
How does collection work?- An exporter/vendor submits documents to its bank, together with the instructions for collecting the debt.
- The exporter’s bank sends the documents to the purchaser’s bank.
- The purchaser’s bank presents the documents to the purchaser in question.
- The purchaser redeems the documents via payment or a trade acceptance draft.
- The purchaser gains access to the goods.
The instructions for the collection order must be identical to the payment terms agreed between the importer and the exporter.
Collection at Handelsbanken
We have well-established trade finance operations, and have local presence in many regions of the world. This means that our payment services are straightforward, quick and correct.
Our collection operations comply with international regulations. And we do all we can to ensure that import and export processes flow as smoothly as possible. The collaboration between our bank branches and our Trade Finance department ensures that processing is fast and correct, and that the arrangements suit your company’s particular business situation and routines.
More information
Would you like to know more about principals (the ordering party), terms, risks and costs in conjunction with collection?
Read more about collection
You are welcome to contact us in Stockholm, Gothenburg or Malmö, so that we can tell you more about what we can do for your company.
|
