Documentary Collections in Trade Finance: Merchant Credit and Guarantee Corporation Limited

Merchantcreditcorp05 Jun, 2021Business

Documentary Collections are different from Letters of Credit and are less expensive than LC?s. It is a method of international trading in which an exporter's(seller?s) bank i.e. remitting bank forwards documents to an importer's(buyer?s) bank i.e. collecting bank and collects payment for shipped goods. It allows the facilitation and simplification of import and export processes.