What is documentary collection?
Payment instrument, where the Seller (Exporter) instructs his bank to forward goods accompanying
documents to the Buyer's (Importer‘s) bank with instructions to hand those documents over to the Buyer
(Importer), indicating conditions on which documents have to be released to the Buyer (Importer).
What are documentary collection payment options?
- D/P „documents against payment“ or CAD – „cash against documents“ - before taking up the documents,
Buyer has to pay value of documents to the Seller through the bank presenting mentioned documents.
- D/A „documents against acceptance“ – before taking up the documents, Buyer has to accept Bill of
Exchange, usually presented by the Seller together with the documents, stating an amount and a date
of payment. Accepted Bill of Exchange is being held at the presenting bank until payment.
- Mix of above stated payment options is available as well, i.e. part of documents value is paid upon
acceptance of a Bill of Exchange and the rest is paid on agreed deferred payment date.
What kind of information Seller and the Buyer needs in order to use documentary collection as a payment
Buyer‘s (Importer‘s) bank name and address is needed in order for the Seller‘s (Exporter‘s) bank to
forward goods accompaniing documents and document‘s hand over instructions.
Documentary collections to be sent to the following „Swedbank“, AB address:
Trade Finance Services Lithuania
Kontitucijos ave.20A, LT-03502 Vilnius, Lithuania
What are documentary collections related costs? Which deal party is liable for those costs?
Usually documentary collections related costs are being split between the Seller and the Buyer so, that
each party covers their bank related costs. In case of agreement all documentary collections related
costs may be covered by one the the deal parties.
Link to „Swedbank“, AB documentary collections
related fees and comissions.