Unpaid DA

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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Fajar
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Unpaid DA

Post by Fajar » Thu Apr 19, 2018 2:13 pm

Dear expert

I would like to ask question regarding unpaid Documentary againts acceptance.

Is it necessary for collecting bank to ask for collateral when the drawee accept the document?

If on maturity date drawee not pay, can the remitting bank or drawer sue collecting bank?

Thank you

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picant
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No

Post by picant » Mon Apr 23, 2018 2:42 am

Hi Pal,

normally acceptance is by the buyer, except when the presenting bank is required to provide a guarantee.
So no collateral or credit grantng is required.
In case of doubt a remitting bank clarification may be necessary.
Other comments appreciated
Ciao

TaiOanlan
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Re: Unpaid DA

Post by TaiOanlan » Sun Dec 23, 2018 7:34 pm

D/A or D/P transactions are basically depending on applicant`s credibility and financial situation.
A bank should be doing thorough credit due diligence before entering any Collection transaction.
Asking for collateral at the stage of a D/A being unpaid on maturity date seems way too late.

Regards,

LLawrence
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Re: Unpaid DA

Post by LLawrence » Sun Apr 14, 2019 2:30 am

Either D/P or D/A does not guarantee a payment unless other products (such as avalisation) are chosen within the transaction. Even if the bill has been accepted, it does not mean that the payment will be made

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