Documentary Collection
Overview of Documentary Collection
Documentary Collection is a trade finance method in which banks facilitate the exchange of shipping documents between exporter and importer against payment or acceptance of terms. Unlike Letters of Credit, banks do not guarantee payment, but act as neutral intermediaries to ensure documents are released only in accordance with agreed conditions.
At BPMB, we provide Documentary Collection solutions that help businesses manage international trade efficiently, reduce transaction risk, and streamline import-export processes while maintaining cost effectiveness.
Why Documentary Collection is used in International Trade
For businesses with established trade relationships, Documentary Collection offers a balanced approach between risk management and cost efficiency. It provides structure and control over document release without the higher costs associated with bank payment guarantees.
Ensure payment before release of trade documents
Maintain control over goods until obligations are met
Reduce administrative complexity
Support predictable and repeat trade transactions
How Documentary Collection Works
Buyer and seller agree on payment and delivery terms
Seller ships the goods to the buyer
Seller submits shipping documents to their bank
Documents are forwarded through banking channels
Buyer makes payment or accepts terms as agreed
Documents are released to the buyer for goods clearance
This structured process ensures that exporters retain control over documents until payment conditions are satisfied.
Types of Documentary Collection
Documents Against Payment (D/P)
Documents are released to the buyer only after full payment is made, offering higher security for exporters.
Documents Against Acceptance (D/A)
Documents are released upon acceptance of a time draft, allowing deferred payment under agreed terms.
Key Benefits of BPMB Documentary Collection Services
- Reduces risk of non-payment for exporters
- Maintains control over trade documents
- Lower cost compared to Letters of Credit
- Simplifies international trade transactions
- Suitable for repeat and trusted trade relationships
BPMB’s Approach to Documentary Collection
BPMB offers advisory-driven Documentary Collection services to ensure smooth execution and clarity throughout the trade process.
Transaction assessment and structuring
Monitoring document flow and timelines
Documentation review and guidance
Support for dispute prevention and resolution
Coordination with banking partners
Who Can Benefit from Documentary Collection Services
Trading
companies
Businesses with established trade partners
Importers and exporters
Companies seeking cost-effective trade finance solutions
Manufacturers and distributors
Why Choose BPMB for Documentary Collection Services
Expertise in international trade processes
Structured and cost-effective solutions
Professional document handling
Transparent transaction management
Strong focus on risk control and compliance
Simplify Trade Transactions with Bank Pembangunan Malaysia Berhad
Partner with BPMB for reliable Documentary Collection services that support secure and efficient global trade.