Payments & collections
Definition
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.
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.
Methods of execution
- Documents against payment
- Documents against acceptance.