Documentary Remittance - Payments & Collections

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What is a documentary remittance?

Documentary remittance is a collection procedure in which a bank receives a mandate from the seller to collect the amount of the debt against the remittance of documents. Documentary remittance can be made in exchange for payment or acceptance.

Who are the stakeholders?

  • The principal or remitter: the exporter

  • The drawee: the importer

  • The remitting bank: the exporter's bank

  • The presenting bank: It is the corresponding bank of the exporter in the importer's country.

 

schema

Scheme of realization

schema

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