This is a form of payment whereby the exporter entrusts the handling of the commercial and transport documents and more often financial documents to Sidian Bank. Sidian Bank will be given instructions concerning the release of these documents to the importer/buyer. Terms of payment/delivery of the documents could be either documents against cash or documents against acceptance.
Types of Documentary Collections
- Import Documentary Collection
- Export Documentary Collection
- Clean Collections
Sidian Bank is requested by the importer to issue their undertaking over accepted bills of exchange, however the Bank is not obligated to do so. The drawee (importer) will request the bank in writing to avalize the bill of exchange drawn by the seller. If the bank chooses to avalize the bill of exchange it will present a counter bill of exchange issued by The Bank to the drawee for acceptance.