7, what is the collection?
Collection is one of the means of settlement, which belongs to commercial credit. There are two types of collection: a documentary collection, clean collection. The creditor (exporter) issued a financial document (Documentary) or not accompanied by financial documents (cleancollection) commercial documents, documents of cooperative banks, cooperative banks through the collecting bank to the debtor (importer) on behalf of receivables.
Clean collection: collection when a bill is not attached to any documents, but only with "non shipping documents (invoice, advance list etc.). This kind of settlement for trade dependent costs, payment, commission, the mantissa sample fee settlement and non trade settlement etc..
Documentary collection: commercial documents accompanying presentation. According to the terms of a P / D, D / P and D / P. Documents released by the collecting bank to the importer, including the bill of lading, means the transfer of ownership of the goods to the importer.