Import Documentary Collections
Ideal when your Seller no longer needs the security of a Letter of Credit but wants to manage shipping documents through banks
Improve business while reducing costs
No bank credit facility needed
May allow purchase without the need for advance payments
Payment, or commitment to pay, will be made after receipt of shipping documents and collection instructions1 from the supplier, reducing your working capital needs
Get the assurance your business needs with Import Documentary Collections
Allows for confirmation of goods shipped before payment
Can inspect the documents to confirm they meet your specifications or required standards
Our Trade Finance Specialists are available to guide you through the process and offer their expertise
Import Documentary Collection Process
- The Seller ships the goods to the Buyer and receives documents from the logistics company handling the shipments (e.g. Bills of Lading or Airway Bill).
- The Seller presents the documents with instructions for obtaining payment to the Seller’s Bank.
- The Seller’s Bank sends the shipping documents and collection instructions to the Buyer’s Bank (Scotiabank).
- Scotiabank contacts the Buyer and informs them under which conditions the documents will be delivered to them. The Buyer can check whether all documents have been enclosed as stipulated in the contract. Scotiabank releases the documents to the Buyer on receipt of payment or acceptance of the draft.
- Having received payment, Scotiabank forwards proceeds to the Seller’s Bank.
- Once payment is received, the Seller’s Bank credits the Seller’s account.
For specific questions relating to Trade Finance, please contact:
Amit Sharma
Director, Trade Finance, Commercial Sales
Email: amit2.sharma@scotiabank.com