Export Collection

Collection is a traditional mode of payment in international trade whereby the seller forwards commercial documents through its bank to the buyer's bank for collection. The buyer's bank will release the documents to the buyer against cash payment or against acceptance of a bill of exchange only. Banks control the release of documents and payment based on international rules for collections, but do not commit themselves to pay.

Collection is an appropriate mode of payment in circumstances where the buyer's solvency is not in question, but the seller wants additional security for payment. On the other hand, the buyer wants to abstain from paying the invoice before being presented with documents proving that the goods have been shipped.

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An export collection is a form of payment in foreign trade in which the exporter, after shipment of the goods, sends the commercial documents to its bank and requests the bank to collect payment from the buyer through a foreign bank.

The security of a collection item is based on the fact that the buyer cannot get the goods without collecting a bill of lading entitling to the goods from the bank.
A collection item is a suitable form of payment for exports shipped by sea.
Export collection items are most common in trading with Mediterranean countries.
Direct collection is a form of export collection in which the exporter sends the documents direct to the collecting bank with Sampo Bank's reference number. Otherwise, the collection is handled normally.

Release of documents

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Flow Chart of Collection Collection Instruction Form	Export Collections through Business Online