Documentary Collections

Why is this export service right for you?

• A more secure way to trade
• Protects your interests if your buyer does not issue Documentary Credits (DCs)
• Puts you in a position to negotiate better terms and prices

Other benefits

• Simple and cost effective
• Documents and payment collections are handled on your behalf
• It's easier and cheaper for buyers to receive Documentary Collections than to issue DCs
• Reduces disputes as Documentary Collections are governed by URC522 which clearly defines the responsibilities of different parties, along with interest and expense issues
• Access to HSBC's international network makes it easier to chase outstanding payments

Potential risks

• Because payment is not made until after the goods are shipped, you bear the risk while goods are in transit or storage until payment or acceptance takes place
• The banks involved in the transaction do not guarantee payment
• Always check a buyer's credit status and reputation before agreeing to a Documentary Collection

Other useful information and services

• Instant@dvice
• DocumentExpress
• How Documentary Credits Work
• Documentary Credit Comparison Table