Convenient settlement method
A documentary collection is a payment form which can be used by a seller or a buyer in order to strengthen their position in a transaction and limit the risk. The seller sends the shipping documents via their bank and the buyer accordingly gets them from their bank after accepting an immediate payment or a term draft.
Documentary collection is a safe and internationally recognized type of payment – its operations are regulated by rules issued by the International Chamber of Commerce "United Collection regulations" Nr. 522, 1995, version (URC 522).
It is worth to notice that this settlement method neither guarantees timely payment to the seller nor that the buyer will receive goods. The bank reminds the buyer of the payment term and organises a quick money transfer to the seller, however, the bank does not assume a payment obligation.
Documentary collection types:
- Documents against payment
The buyer will get the shipping documents for the goods from their 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 their bank after accepting a deferred payment obligation or bill of exchange in the respective amount. The actual execution of the payment depends on the buyer’s solvency.
Are you the seller?
- Suitable when you trust the buyer, their solvency and the country of location
- Destination for delivering goods is outside of Estonia and for its transportation you need to use transfer by ship
- To start this process, please contact your bank
Are you the buyer?
- The seller starts the documentary collection process via their bank
- Suitable when goods that can be stored for longer periods, can be sold easily or can be shipped back
- Suitable for goods, which purchase documents guarantee ownership rights
Title
How does documentary collection work?
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The buyer and seller agree to use documentary collection for paying for the goods.
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The seller sends the buyer the goods according to the agreed conditions.
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The seller submits the shipping documents for the goods to their bank and gives instructions on which conditions the documents can be given to the buyer.
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The seller’s bank forwards the documents to the buyer's bank
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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.
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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.
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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.
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The seller’s bank will pay the seller the money at their 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 |
| 10. Compliance with AML and sanctions | EUR 25 |
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.
Additional information
For the seller it’s simple to apply
- Register for consultation
- We will contact and advise you
Other ways to finance your trade
Factoring
Change your invoices into cash flow. Offer extended payment terms to your clients, without reducing your working capital or sales volume.
Letter of credit
Usefull for companies active in worldwide trading. For importers it minimizes the risk of wrong deliveries since the bank only pays if the seller shows the agreed documents.
For exporters it secures the payment from the buyer.
Bank guarantees
Guarantees provide your trading partners the commitment of SEB to pay to them in specified situations.
Want to make sure you find a suitable solution?
- Our specialists will help you find the suitable financing solution for your business.
- We have a dedicated team of professionals you can trust
