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.

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

Frequently Asked Questions