Documentary Collection

Documentary collection is a method of payment for commercial transactions. The bank at the seller's request collects charges for the sold goods in exchange for the documents confirming the delivery of goods to the buyer.

Types of Documentary Collection

  • Documents against payment: the collecting bank releases the documents to the buyer only against payment in definite currency.
  • Documents against acceptance (of bills of exchange): the collecting bank releases documents only against the buyer’s acceptance of the bill of exchange payable in a future date.


Documentary collection is subject to the “Uniform Rules for Collections” (URC) of Publication No 522 of the International Chamber of Commerce (Paris).

  • Opportunity to choose whether to pay or not.
  • Possibility to pay against the documents that confirm the delivery of goods instead of advance payment.
  • Opportunity to obtain deferred payment (if documents are to be released against acceptance of bill of exchange).
  • The fees and commissions for the services of the bank are less compared to letters of credit.
  • The documents are released to the buyer only in exchange for charges or acceptance of the bill of exchange payable in a future date.
  • Possibility to retain control over the goods until the buyer has effected payment or accepted the bill of exchange.
  • More efficient administrative routines since the bank follows up the payments.
  • Possibility to obtain guarantee of the buyer’s bank.


The fees and commissions for the services of the bank are lower in comparison with the letters of credit