Document Under Collection with Two Different Tenor

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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RAJENDRA
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Document Under Collection with Two Different Tenor

Post by RAJENDRA » Thu Apr 19, 2012 6:53 pm

RECEIPT OF DOCUMENTS UNDER COLLECTION WITH TWO DIFFERENT TENORS
EX.
100% - USD 100
90% AT SIGHT USD 90.00 AND 10% UNDER USANCE TO PAY ON DUE DATE USD 10.00

Please help how to lodge and send acknowledgement to supplier bank.
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picant
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Be cautious

Post by picant » Fri Apr 20, 2012 12:08 am

Hi Pal,

it must be certain that documents have to be delivered by payment at sight for 90% and an acceptance or undertaking by the drawee only.Otherwise contact remitting bank for clarification.
Other comments appreciated
Ciao
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sandeep_mt
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Post by sandeep_mt » Sun Jun 03, 2012 10:58 pm

Dear Rajendra

With reference to your question ,u can lodge two bill one is for 90% of invoice value and another for 10% under D/A before that its better to confirm with the remitting bank regarding the document delivery instruction either docs to be delivered to drawee against payment or acceptance.
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nrprakashreddy
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Post by nrprakashreddy » Wed Feb 05, 2014 5:08 pm

lodge with sight bill but instruction should be mention in instructions in finacle payment terms in usd 90 dollars in sight basis,usd 10 dollars in usance basis.
;)
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