Export (Documentary collection)Export (Documentary collection)

When your company uses documentary collection as a method of payment, the importer's bank has control over the goods via the shipping documents that give access to the goods. The documents can only be delivered to the buyer after he has paid the amount due or signed a bill of exchange that falls due on a later date. Please note that banks have no payment obligations in documentary collections.

Advantages of using collection as a payment method

  • The exporter’s bank monitors whether the payment is made or accepted.
  • The shipping documents stay in the banking system until the collection has been paid or accepted.
  • You can electronically initiate and manage your export collections.
  • You benefit from better liquidity.
  • They are easier to process than documentary credits.


You should be aware, however, that if the goods are addressed to the buyer, the buyer will usually be able to have them released without presenting the transport documents, with the exception of bills of lading.

For this reason, it might be prudent to address the goods to a transport firm or the buyer’s bank – although this requires the bank’s agreement.

Whenever goods are shipped, there is no guarantee of payment. You could incur storage costs if buyer fails/delays to pay. 


Direct collections

If you wish to make your internal procedures even more effective and flexible, you can use our direct collection service. By using our online system, you can print the letter of instruction and send it directly together with the documents to the importer's bank. At the same time we receive an electronic copy of the letter of instruction which we use for registration in our systems. After this we handle the rest of the transaction for you.

 

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Danske Bank A/S
London Branch,
75 King William Street
London EC4N 7DT
United Kingdom

Tel: +44 (0)20 7410 8000
Fax: +44 (0)20 7410 8001

SWIFT/BIC: DABAGB2L
Sort Code: 30-12-81

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More contact informationDownload map as PDF
 

Want to know more?Want to know more?

Trade & Export Finance products and services

Read More about our trade & export finance products and services in these booklets (PDF):

Download factsheet on Documentary Credits
Download factsheet on Int'l Guarantees
Download factsheet on Collections
Download factsheet on Business Online

To read PDF documents, download Adobe Reader®

Document Checklist
What to look out for in every document involved in the documentary credit process:

Danske Bank A/S, London Branch, 75 King William Street, London EC4N 7DT, United Kingdom. Telephone: +44 (0)20 7410 8000 Facsimile: +44 (0)20 7410 8001 E-mail: london.info@uk.danskebank.com. VAT number: 853 7590 92. Danske Bank A/S, London Branch is authorised by the Danish Financial Supervisory Authority (Finanstilsynet) and is subject to limited regulation by the the Financial Conduct Authority and the Prudential Regulation Authority. Complaints should be addressed to our Legal Department. Details on the extent of our regulation by the Financial Conduct Authority and the Prudential Regulation Authority are available from us on request. Registered Branch in England and Wales, Company No. FC011846, Branch No. BR000080. Danske Bank A/S, Incorporated in Denmark, CVR No. 61 12 62 28 Copenhagen. Our details can also be viewed on The Financial Services Register under Firm Reference Number 124655.

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