Switch to mobile version. Top

Business

Documentary collection

Documentary collection

Convenient, easy and cheap way to pay

  • The risk of international contracts decreases
  • Payments are made according to international rules
  • The seller may credit the buyer

A documentary collection is a settlement method when the seller instructs the bank to forward financial and/or commercial documents to the buyer's bank in exchange for payment against them or for acceptance of a promissory note (agreement to pay).

Documentary collection is a good way to pay when:

  • the buyer does not want to pay for goods or services in advance
  • the seller disagrees that the buyer pays for goods or services upon receipt
  • the seller does not required to secure payment by a L/C

Benefits for the buyer

  • This is a safer way to pay for goods or services compared with advance payment.
  • The buyer can decide himself when to pay against the documents.
  • The buyer can be credited by the seller: upon accepting a fixed-term promissory note and collecting goods against received documents, the buyer can sell the goods received and settle accounts with the seller already at maturity.

Benefits for the seller

  • The bank does not guarantee payment, but it controls that the documents provided by the seller are forwarded to the buyer only after latter had paid for goods against documents or accepted a promissory note for payment.
  • Acceptance of a promissory note is an unconditional commitment of the buyer to pay it at maturity.
  • With documentary collection paying is easier and cheaper than by a L/C.
  • If an ownership document (sea or ocean bill of lading) is being collected, the buyer may not collect goods without paying for them or accepting a promissory note for payment.

Risk

  • With documentary collection, in contrast to a L/C, the bank does not undertake to pay to the seller, so the seller, to which a third party does not assume any obligation, undertakes the risk of the buyer's avoidance to pay and insolvency.
  • Documentary collection is a documentary settlement method. When this settlement method is used, only the documents listed in the documentary collection instructions and provided by the seller (not the goods) are checked, so there exists a certain degree of risk that the information provided in the documents will not match reality, for instance, the delivered goods will be damaged or will not meet the quality standards.
  • Documentary collection does not protect from the risk of falsification of documents.

Documentary collections Charges
Advice of documentation / collection instructions received EUR 30
Collection of documents (bills of exchange) or payment against documents (bills of exchange)
0.15 %, min EUR 36,
max EUR 220
Custody of bills of exchange at SEB Bank from acceptance to maturity date EUR 36
Amendment of collection instructions EUR 20
Keeping of documents, if payment or acceptance not effected within 15 calendar days from the date of notification to the customer about documents’ receipt EUR 30 per month or a part thereof from the date of notification
Keeping of documents, if payment is 15 calendar days overdue after maturity date EUR 30 per month or a part thereof from maturity date
Delivery of documents that were not honoured / were honoured directly to the customer or back to the bank / supplier EUR 60
Endorsement of a bill of lading EUR 30
Other services Charges
Preparation of request or information related to the documentary collection or bill of exchange at the customer's request EUR 25
Dispatch of documents abroad by courier EUR 55
Dispatch of documents in Lithuania by courier EUR 20

 


Contact

ASSET MANAGEMENT AND TRADE FINANCING DEPARTMENT

Business Customer Support Unit

Tel. (8 5) 268 1380

 

S|E|B

Attention! Your web browser does not correspond to the requirements needed to visit SEB website. Please change web browser or device that you use for browsing the site.

Attention! Your web browser does not correspond to the requirements needed to visit SEB website. Please change web browser or device that you use for browsing the site.