Uob documentary collection form 2025

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There are two types of Documentary collections: Documents against Payment Collection (D/P): The importer receives the delivery documents only against payment. Documents against Acceptance Collection (D/A):
Risk Degree: Letters of credit give more assurance to the exporters than cash against documents. For this reason the letter of credit is accepted as a more secure payment method in international trade than the documentary collection.
Steps in Export and Documentary Collection The documents are prepared and sent to the exporters bank, which is also known as the remitting bank. The exporters bank then forwards the documents to the importers bank, which is known as the collecting bank.
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A Documentary Credit (D/C) also known as Letter of Credit (L/C) is a method of payment where the buyers bank guarantees payment to the seller with the condition that the seller has to fulfil the terms specified in the L/C.
A letter of credit is a legally binding document that guarantees payment to a seller. A documentary collection allows a buyer to refuse a shipment if it does not match the standards of excellence. The importers bank issues the letter of credit, while the exporters bank issues a documentary collection.
What does Documentary letter of credit mean? A documentary letter of credit is where the buyer under an international sales contract procures his bank to issue an irrevocable credit in favour of the seller to pay an agreed sum of money against tender by the seller of the shipping documents.
A letter of credit is a legally binding document that guarantees payment to a seller. A documentary collection allows a buyer to refuse a shipment if it does not match the standards of excellence. The importers bank issues the letter of credit, while the exporters bank issues a documentary collection.
A documentary collection refers to apayment collected by a bank at the sellers request against handover of documents to the buyer. (the sellers bank) together with the collection order. The remitting bank sends the documents, together with the necessary instructions, to a bank in the buyers country.

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