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hi everyone well be looking at documentary collection method DP which is also known as documents against payment as per our previous video the Importer and exporter are new to each other there is no trust between both parties they cannot compromise whether to have open account or Advanced payment so they need the help of the bank whom they can trust to assist them for this the bank has invented two methods to solve the problem which are documentary collection method and documentary credit method under documentary collection method there is site and usance method for site The Collection method is called documents against payment DP for usance it is called documents against acceptance which is Da in this video we shall look at the DP method in this presentation on on documentary collection we have the exporter also known as the principal and we have the Importer known as the draw we both of them have entered into a sales contract whereby they have agreed that the method of payment will
