An import collection is a method of payment used in import trade. Accordingly, a foreign seller sends the commercial documents to his own bank which collects the payment from the buyer, i.e. your company through your bank after delivery. We recommend using a documentary collection because it enables your company to know at the time of payment that the goods have arrived or are at least en route. At the same time, your company's working capital management becomes more efficient as you get more time to pay.
If the payment term used is D/P (Documents Against Payment), the documents must usually be released upon presentation. The buyer has the opportunity to pay for the collection only after the goods have arrived in the country. You will avoid possible problems if the sales contract stipulates the time of payment, e.g. after the goods have arrived.