[TBC Bank] Documentary Collections

Documentary collections are mainly appropriate in cases where:

The seller and the buyer know and trust each other.
There is no doubt about the buyer's willingness and ability to pay.
Stable political, economical and legal conditions exist in the importing country.
No import restrictions such as foreign exchange controls, exist in the importing country, or else all of the necessary licences have already been obtained.

Advantages

The exporter has the possibility of rataining control of the goods until the drowee either effects payment or accepts a draft.
Handling is simple and inexpensive.
Payment settlement is often quicker than on open account.

Letter of Credit vs Documentary Collections.

In the case of a documentary collections, the proceeds will be credited to the principal only after receipt of funds from the drowee.
When a bank processes a documentary collection, It agrees to cary out the seller's collection instruction, but does not assume any liability regarding the payment owed. In the case of the letter of credit, on the other hand, either the confirming or the opening bank common to pay, provided the banaficiary complies with the conditions of the letter of credit.

Servce Fees

ADVISING ON COLLECTION	20 USD
PAYMENT AGAINST COLLECTION	0.2%, MIN. 20 USD/INCLUDING ACCEPTANCE , MATURITY CONTROL/

Please, Contact us if you value the timely and profitable decisions.

Kakha Kakhiani
Manager of Documentary Operations
(995-32) 2 777-999
KKakhiani@tbcbank.com.ge