Documentary And Clean Collection

Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
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MIA19
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Documentary And Clean Collection

Post by MIA19 » Fri Dec 12, 2014 5:47 pm

Hi,
how do you read art. 2 of urc 522
How do you define clean collection?
Would you say that:
clean collection is documentary collection containing only financial documents
or
is not considered as documentary collection than
collections are: documentary collection and clean collections
regards

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picant
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URC 522

Post by picant » Sat Dec 13, 2014 1:43 pm

Hi Pal,

URC 522 more specific:
Clean collection :collection of financial documents not accompanied by commercial documents.

"Financial documents " means bill of exchange, promissory notes, cheques or other similar instruments used for obtaining the payment of money.

So in case of documents against acceptance, you will have documentary collection and a clean collection in cashing the draft/promissory note at maturity.
Other comments appreciated.

PS.Concerning the applicable commissions, in case of simple collection, i.e. a single invoice, some italian banks charge clean collection fees.

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Documentary And Clean Collection

Post by bodebowale » Thu Apr 06, 2017 5:33 pm

Clean collection is when only financial documents are collected on behalf of the buyer, while documentary collection can be collection of either financial and other documents OR collection of other documents alone. My thought

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picant
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my thought

Post by picant » Sat Apr 08, 2017 2:08 am

Hi Pal,

an invoice alone is a clean collection, so a draft or bill of exchange..
ciao

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Re: Documentary And Clean Collection

Post by dv01001 » Wed Oct 04, 2017 12:02 pm

Just emphasize for clear understanding. thanks for your reading
- Clean collection include financial documents (eg: bill of exchange, promissory note...) WITHOUT commercial documents
- Documentary collection include one of following cases:
+ Financial documents along WITH commercial documents (eg: transport docs, commercial invoice...)
+ Commercial documents WITHOUT financial documents

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picant
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Re: Documentary And Clean Collection

Post by picant » Sun Oct 08, 2017 11:38 pm

Hi Pal,

the difference is in collecting fees, in Italy clean collections have a minor charge and it is possible to
apply it to invoice only too.
Ciao

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