Documentary Collections (Imports)

• Reduces payment risk for your supplier at minimal cost to you
• Provides an alternative payment method to issuing a Documentary Credit
• Enables you to receive the goods before making payment via Documentary Collection against acceptance (D/A)
• Eliminates the need for credit facilities if no bank finance is required on payment

Documentary Collections against payment (D/P) and against acceptance (D/A) are ways to offer payment assurance to your supplier in a simple and cost effective manner.

The collection process starts after your supplier has shipped the goods, obtained the necessary documents, and presents the documents with his instructions to his bank. Your supplier's bank (remitting bank), will send these documents to HSBC (collecting/presenting bank), for payment.

There are two types of collections.

• Under D/P terms, import documents are released to you upon payment
• Under D/A terms, documents are released to you against your promise to pay (ie. acceptance)

As part of the commercial contract, you and your supplier should agree on the documents that should be presented. Use the documents to protect your business. For example: If you are concerned about the quality of the goods, you can request an inspection certificate issued by a third party company or your representative. Or, say your supplier is responsible for insuring the goods. In that case, make sure the documents include an insurance policy certificate. Before you make your decision to pay (D/P) or accept (D/A), you are welcomed to examine the documents at our offices and consult our trade services experts if you have any queries.

With some 10,000 offices in 83 countries and territories, your suppliers will likely be able to easily dispatch their collections through our extensive network. As such, your documents will arrive faster, allowing you access to the goods without delay. By banking with HSBC, your suppliers will be paid as soon as your account is debited. There are no hidden interest or payment delays.