Documentary Collection [Last Updated by: admin on 2012-01-01]
Means collection of (a) financial documents accompanied by commercial documents and (b) commercial documents not accompanied by financial documents. A method of settlement whereby the seller initiates the banking system, the collection of money due to him from the buyer. Payment will be made against a Bill of Exchange and documents of title. Documents can be released against acceptance (D/A) or against payment (D/P). If no Documents of Title are attached, the collection is known as Clean Collection (see Clean Collection, Clean Bill and Documentary Bill).