As entrusted by an exporter, BOC U.S.A. collects payments from an importer through a collecting bank, upon presentation of the exporter's documents.
Compared with remittance, this product provides more certainty of payment in two forms, through Documents Against Payment (D/P) and Documents Against Acceptance (D/A).
Features & Benefits
Relative low cost
Relative low banking fees help reduce financial expenses and control costs.
Easy to use
Compared with an L/C, the procedure of outward collection is much simpler.
The importer can only take delivery of the goods after accepting payment, helping reduce risk exposure for the exporter compared to open account sales.