Mixed Payment Under Documentary 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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jojo
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Mixed Payment Under Documentary Collection

Post by jojo » Tue Sep 06, 2016 2:26 pm

dear experts:
i received a documenty collection wit the following conditions
*- to deliever to docs against 50% at sight .
*-the remaing 50% by acceptance to pay after 15 days from first payment.

now should i consider the docs as sight payment , acceptance , mixed payment.

quang
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Post by quang » Thu Sep 08, 2016 3:35 pm

i think it is mixed payment, you could release documents when the drawee pays 50% and block his account with you for the remaining 50% until 15 days from first payment

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picant
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Clarification...

Post by picant » Fri Sep 09, 2016 7:23 pm

Hi Pal,

the remaing 50% by acceptance by whom?
The instructions must be clear or the bill of exchange to be accepted drawn on the buyer.
Ask clarification to the sending bank or all at sight!
Other comments appreciated
Ciao

jojo
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Clarification

Post by jojo » Sun Sep 18, 2016 3:34 pm

the payment as follows: 50%at sight and remaing 50% by acceptance from the drawee to pay after 15 days from the first payment.
now we asked the drawee to cover his account with us with 100% and we will pay 50% now and block the other 50% to be paid after 15days.
the drawee refused our instruction complaining that he has got a grace period from the drawer and it's better to him to pay at sight if he has to cover 100% and asked us to act according to the drawer bank's instruction to release the docs against 50% at sight and acceptance to pay later by the drawee.
your veiw in this regard appraciated
regards

bodebowale
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Mixed Payment Under Documentary Collection

Post by bodebowale » Thu Apr 06, 2017 4:44 pm

My opinion really is that the bank should always follow the instruction of the sender whether is documentary collection or documentary credit.

Here the senders say pay 50% at sight, so 50% should be paid upon collection and review of the document to ensure to conforms with the senders instruction.

The balance of 50% upon acceptance of the draft will be payable after 15 days (the seller would have put some things into consideration before agreeing to that option) so i don't think this bank should request for a collateral before the release of the 50% upon acceptance of draft and after 15 days.

Thanks

saikumar1208
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Re: Mixed Payment Under Documentary Collection

Post by saikumar1208 » Fri Sep 15, 2017 11:30 pm

It is a mixed payment. Documents to be released aginst 50% payment and remaining to be paid after 15days from first payment. Here the point to be noted is acceptance to be made before first payment itself because if documents are released against 50% payment before acceptance, there are chances of buyer not accepting for the remaining payment.

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