“Clean collection” – This is only a collection of financial documents (bills, checks) ex commercial documents.
Below are types of collection
- Clean collection
- Factoring with regress
Clean collection is either a collection of commercial documents (invoices, certificates of freight service, insurance, etc.) excluding the financial documents or uniform collection of both commercial and financial documents.
By type of payment, collections are classed to:
- Documents Against Acceptance or D/A
This is a scheme of collection where the exporter’s bank authorizes the importer’s bank to deliver goods document to the importer against acceptance of a bill payable after a specified time from the date of submission or on a fixed day.
- Documents Against Payment or D/P
This is a scheme of collection where the exporter’s bank authorizes the importer’s bank to deliver goods document to the importer only after payment by the latter for the specified goods.
Updated 2022-09-07 17:08