For seller
The advantages the documentary collection gives to the seller/exporter:
- the buyer must pay or accept a bill of exchange to have the documents released
- optimisation of cash flows and hence improved liquidity
- more efficient administrative routines, including follow-up on payments/acceptance
- the fees and commissions for the services of the banks are less compared to letters of credit
- possibility to retain control over the goods
- can obtain guarantee of the buyer’s bank (buyer’s bank aval on the bill of exchange accepted by the buyer)