TRADE FINANCE AFRICA

AFRICA DOCUMENTARY COLLECTION URC 522

DOCUMENTARY COLLECTION AFRICA

Documentary Collection is the process A documentary collection is a transaction whereby the exporter entrusts the collection of payment to the exporter’s bank called also remitting bank, which sends documents to the buyer’s bank called also collecting bank, along with instructions for payment.

Banks solely act as agents to the parties on whose behalf they are acting and only to follow responsibilities specified in the collection instructions. Banks do not guarantee any payment and documentary collection is subject to the Uniform Rules for Collection, International Chamber of Commerce Publication No. 522 (URC522).

In general, a documentary collection would be appropriate where:

  • The seller and the buyer trust each other because of a long standing business relationship;

  • The buyer's as well as seller's countries are politically and economically stable.

TRADEFINANCE.AFRICA COUNTRIES OF EXPERTISE