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Collections

  • Stephen A. Jones
Chapter

Abstract

A collection is a trade product which uses the banking system to collect payment or obtain an undertaking from the end-buyer to pay on a future date in exchange for shipping documents. Documentary collections can provide control over the goods until the conditions set out in the collection schedule have been fulfilled. Their use and operation are explained and how protest can provide the basis for legal recourse in the event of dishonour. The methods of advance against collections, bill discounting, and loan refinancing are explained.

Keywords

Advance against collections Documents against acceptance (DA) Documents against payment (DP) Documents in trust facility Inward bill discounting Outward bill discounting Protest 

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Stephen A. Jones
    • 1
  1. 1.AXS Trade Finance Ltd.Solihull, West MidlandsUK

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