We also facilitate international trade transactions by providing a documentary collection facility. Under this arrangement, the supplier knows that the shipping documents will be released to the buyer against payment (DP) or acceptance (DA) of draft, based on their payment agreement.
Documentary collections are of two types
- Document against payment (DP) – Sight Documents
- Document against acceptance (DA) – Term Documents
Under this service shipping documents are sent to us by the Seller’s bank to be delivered to the Buyer as per their instructions.
The Seller is assured that documents are delivered to the Buyer against payment (DP documents)/ or acceptance to pay on due date (DA document) as per their terms of payment.
The Buyer is able to get the goods without making any payment until the goods are shipped by the Seller and the shipping documents are received at our end. The Buyer gets delivery of the documents as per the agreed payment terms. DA terms enable the Buyer to get credit from the supplier.