Export Documentary Collection

Processing of export documents in accordance with written instructions, received by the exporter and their dispatch to the bank of the foreign buyer, in order to obtain payment from the buyer upon delivery of documents (documents against payment – D/P), or on predefined maturity (documents against acceptance).

What is it?

  1. The exporter (client of UniCredit Bulbank) ships the goods to the buyer and presents to the bank the documents relating to the goods and their shipment, such as Commercial invoice, Bill of Lading, Cargo insurance, etc., accompanied by a Collection instruction. In the Collection instruction the exporter indicates the full details of the foreign buyer (the Drawee), the buyer’s bank (the Collecting bank), short description and value of the exported goods, full description and value of the presented documents by type and number and conditions under which the documents are to be handed over to the Drawee.

  2. UCB processes and forwards the documents to the Collecting bank, which is usually the Buyer’s bank, for their handling and delivery to the buyer in accordance with the collection instruction. Depending on the instructions, the Collecting Bank or Presenting Bank releases the documents to the Drawee upon payment of their value, or against acceptance/a written undertaking for payment at maturity, or without payment.

  3. Under Export Documentary Collections, the bank only receives and passes on documents in accordance with the exporter’s instruction on how the documents should be handled, without assuming any payment obligation towards the exporter. The payment of the documents sent on collection base is dependent only on the buyer’s goodwill and creditworthiness.

Advantages

  • A higher level of protection compared to open account transfers
  • Lower cost compared to Letters of credit but also correspondingly lower level of security

Whom is it Suitable for?

  • Export-oriented companies trading with almost any type of goods
  • Exporters dealing with importers that have had previous commercial relations with other terms of payment, such as by letter of credit

How to Apply for the service?

Please consult our Trade Finance Advisory Unit to get more information.

Frequently Asked Questions

Yes, the payment depends solely on the integrity and solvency of the importer.

Up to the point when the importer pays or formally agrees to pay on a specified future date, the documents are controlled by the bank.

Yes, with the exception of cases where presentation of a marine Bill of lading is required or documents are passed against acceptance of Bills of Exchange.

Yes, in certain cases with Consent / Order of the exporter.

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Bulbank Online Trade Finance Module

Trade Finance module as a part of Bulbank Online is a new functionality for accepting corporate clients’ orders and processing trade finance deals.

The new platform has been developed to ease and speed up the communication, processing and access to real-time information regarding bank guarantees, Letters of credit and Documentary collections by using the advantages of the online tool.

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