Documentary collections

Documentary collection

Documentary collection - seller‘s instruction to forward the goods accompanying documents to the buyer‘s bank and release them to the buyer in exchange for buyer‘s payment or payment undertaking.

Safer payment instrument comparing to advance payment/ open account.
Possibility for the buyer to check goods accompanying documents before effecting payment.
Possibility for the buyer to receive goods after accepting deferred payment undertaking (bill of exchange).
Safer payment instrument as bank delivers documents against payment.
Possibility to finance the buyer.

Course of the documentary collection

The buyer and the seller agree to use documentary collection as a payment instrument.
The seller ships the goods to the buyer and submits goods accompanying documents to his bank instructing to forward respective documents for payment to the buyer’s bank.
The seller’s bank forwards the documents to the buyer’s bank.
The buyer’s bank advices the buyer about receipt of documents.
In order to get the documents from the bank, buyer has to pay value of documents to the bank. Buyer’s bank releases the documents to the buyer and forwards value of documents to the seller’s bank who credits the value of documents to the seller’s account.

What is documentary collection?

Payment instrument, where the Seller (Exporter) instructs his bank to forward goods accompanying documents to the Buyer's (Importer‘s) bank with instructions to hand those documents over to the Buyer (Importer), indicating conditions on which documents have to be released to the Buyer (Importer).

What are documentary collection payment options?

D/P „documents against payment“ or CAD – „cash against documents“ - before taking up the documents, Buyer has to pay value of documents to the Seller through the bank presenting mentioned documents.
D/A „documents against acceptance“ – before taking up the documents, Buyer has to accept Bill of Exchange, usually presented by the Seller together with the documents, stating an amount and a date of payment. Accepted Bill of Exchange is being held at the presenting bank until payment.
Mix of above stated payment options is available as well, i.e. part of documents value is paid upon acceptance of a Bill of Exchange and the rest is paid on agreed deferred payment date.

What kind of information Seller and the Buyer needs in order to use documentary collection as a payment instrument?

Buyer‘s (Importer‘s) bank name and address is needed in order for the Seller‘s (Exporter‘s) bank to forward goods accompaniing documents and document‘s hand over instructions.

Documentary collections to be sent to the following „Swedbank“, AB address:

„Swedbank“, AB
Trade Finance Services Lithuania
Konstitucijos ave.20A, LT-03502 Vilnius, Lithuania

What are documentary collections related costs? Which deal party is liable for those costs?

Usually documentary collections related costs are being split between the Seller and the Buyer so, that each party covers their bank related costs. In case of agreement all documentary collections related costs may be covered by one the the deal parties.
Link to „Swedbank“, AB documentary collections related fees and comissions.

Notice: fees and commissions can be deducted in euro or equivalent in another currency using an official exchange rate

Documentary collection
Import collection
Payment under a certain document or a bill of exchange	0.15% (min EUR 75, max EUR 250)
Advice of the amendment of collection instruction	EUR 30
Return of unpaid documents or release of documents “free of payment”	0.15% (min EUR 75, max EUR 250)
Documents handling fee in case of non-payment or non-acceptance within 15 days after the Bank’s advice to a client about the received collection	EUR 30
Documents handling fee in case of non-payment within 15 days from the payment term	EUR 30
Custody of accepted bills of exchange until the payment	EUR 35
Query or data preparation at the client's request	EUR 20
Preparation and dispatch of documents by courier post within Lithuania	EUR 15
Preparation and dispatch of documents by courier post to foreign countries	EUR 55
Export collection
Collection of documents and bills of exchange	0.15% (min. EUR 75, max EUR 250)
Amendment of the collection instruction	EUR 30
Query or data preparation at the client's request	EUR 20
Preparation and dispatch of documents by courier post within Lithuania	EUR 15
Preparation and dispatch of documents by courier post to foreign countries	EUR 55

Application for documentary collection

Inquire about bank guarantee

When replying to queries submitted in this form, we will be able to provide only general information about bank guarantees. If you have any questions related to financial information of your company, please login to the internet bank or contact us by phone +370 5 268 4422.

To open a business account, book a consultation online or by calling +370 5 268 4422.

Company’s name*
Company’s code*
Name, surname*
Telephone*
E-mail*
Question

Information regarding potential risks

The seller has no guarantee that the buyer will surely be able and willing to purchase the goods, and that the buyer will come to the bank in order to pay for the goods and pick up the goods documents. The buyer can not check the goods during transportation, before carrying out the payment for them.

- 20 %

20% discount on home delivery or delivery to selected post offices in your country.

Free

Monitor changes in customers and suppliers, manage risks and grow sales for free for half a year.

- 200 Eur

EUR 200 discount on accounting services for Swedbank customers.

Documentary collections