Introduction
The bank provides intermediary services to facilitate trade settlement between the Seller and the Buyer. The Seller initiates the collection by submitting documents and collection order to their banker after shipping the goods to the Buyer.
Features and Benefits
- It is simpler and cheaper way in handling sales or purchases or goods as compared to Letter of Credit.
- It assures the Seller that the shipping documents will be released to the Buyer only upon payment (D/P) or acceptance (D/A) of a Bill of Exchange.
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