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Documentary collection

Documentary collection

Upon documentary collection the shipping documents are mediated by the bank

  • The buyer does not have to make an advance payment
  • The risk arising from international business decreases
  • Handling according to international rules

A more secure way for receiving a payment than ordinary payment order
Upon using a documentary collection, the seller of the goods will send the shipping documents via the bank. The buyer will get the shipping documents from the bank after accepting an immediate payment or a term draft.

The banks handle the documentary collections according to the International Chamber of Commerce's publication No. 522: "Uniform Rules for Collections".

The bank only mediates
The greatest advantage of collection is its simplicity and cheapness.
Documentary collection does not guarantee to the seller prompt payment by the buyer or acceptance of goods.

In the collection transaction the bank only acts as an intermediary. The bank does not assume a payment obligation, but observes whether the collection requirements are met in the buyer’s country of location, reminds the buyer of the payment term and organises a quick money transfer to the seller.

Possible use of documentary collection
As the payment depends on the buyer’s wish, collection is suitable for use if the seller trusts the buyer, their solvency and the country of location (the country is economically and politically stable).

It is recommended to use collection if the shipping documents include documents granting the right of ownership. If the goods are shipped to the buyer by boat, the seller will receive the ocean bill of lading proving the right of ownership of the goods. The buyer cannot access the goods without the bill of lading. In order to receive the goods, the buyer must pay the bank the amount fixed in the collection.

Documents against payment
The buyer will get the shipping documents for the goods from its bank after paying the value of the goods indicated in the documents to the bank.

Documents against acceptance
The buyer will get the shipping documents for the goods from its bank after accepting a term draft or a bill of exchange in the respective amount. The actual execution of the payment depends on the buyer’s solvency.

  1. The buyer and seller agree to use documentary collection for the paying for the goods.
  2. The seller sends the buyer the goods according to the agreed conditions.
  3. The seller submits the shipping documents for the goods to its bank and gives instructions on which conditions the documents can be given to the buyer.
  4. The seller’s bank forwards the documents to the buyer's bank with courier service.
  5. The buyer’s bank informs the buyer of the reception of documentary collection in favour of the buyer and of the conditions, which enable the buyer to receive the documents from the bank. Before making the decision whether to accept the documents, the buyer may view them in the bank.
  6. If the buyer agrees with the collection conditions, the bank will hand over the documents to the buyer after accepting an immediate payment or a term draft.
  7. Upon immediate payment, the bank will pay the amount to the seller at the release of documents, and upon term draft, on the respective payment date.
  8. The seller’s bank will pay the seller the money at its reception from the buyer's bank.
   
1. Waiver of documents against payment or acceptance 0,2% of the collection amount, min. EUR 95
2. Fee for partial payment from second payment EUR 70
3. Amendment fee EUR 50
4. Deferred payment fee EUR 32
5. Waiver of documents without payment or acceptance EUR 50
6. Fee for refusal or cancellation EUR 70
7. Re-assignment of the right of ownership to goods if the goods are sent to the name of AS SEB Pank EUR 50
8. Information processing and forwarding fee depending on costs, min. EUR 10
9. Default interest (calculated on any debt from due date until actual date of payment) 0,5% per day

NB! The services charges of another bank may be added if another bank is used.
AS SEB Pank reserves the right to charge for additional services and/or time-consuming transactions in addition to the price list.

Base rates

Valid as 16.08.2019
1-month EURIBOR® -0,4230
3-month EURIBOR® -0,4200
6-month EURIBOR® -0,4270
12-month EURIBOR® -0,3850
EONIA® -0,3640
Bank's base interest 0,0000
EURIBOR® historical data
EONIA® historical data

 

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