Documentary Collections

A simple, cost-effective and secure means of trading internationally

Documentary Collections against payment or acceptance offer you simple, cost-effective and secure means of trading internationally. Does your supplier want payment assurance but you prefer not to use a Documentary Credit (DC)? HSBC's Documentary Collection against payment (D/P) and against acceptance (D/A) are simple and cost effective ways to offer protection to your supplier and at the same time, help you to reduce costs.

How Do Collections Work?

The collection cycle starts when your supplier, having shipped the goods and obtained the necessary documents, presents the documents together with his instructions to his bank. Your supplier's bank, called the remitting bank, will send these documents to your bank, the collecting/presenting bank, for payment.

There are two types of collections. Under D/P terms, import documents are released to you upon payment. Under D/A terms, documents are released to you against your promise to pay (i.e., acceptance).

Protecting your Interests

As part of the commercial contract, you and your supplier should agree on the documents that should be presented. Use the documents to protect your business. For example, if you are concerned about the quality of the goods, you can request an inspection certificate issued by a third party company or your representative. Or, say your supplier is responsible for insuring the goods. In that case, make sure the documents include an insurance policy certificate. Before you make your decision to pay (D/P) or accept (D/A), you are welcome to examine the documents at our offices and consult with our trade services experts.

Size Matters

With HSBC's global network of some 7,000 offices in 81 countries and territories, chances are that your suppliers will be able to easily dispatch their collections to us from one of our branches. This ensures that your documents will arrive faster, allowing you access to the goods without delay. By banking with HSBC, one of the world's largest financial services organisations, you can rest assured that your suppliers will get paid as soon as your account is debited. No hidden interest or payment delays.