Bill Is Available At Buyers Bank, How Do We Collect Payment

[Finance]

We have sent documents on a documentary collection to our clients buyers bank.

The bill was drawn by our client (as drawer) on the buyer (drawee)

The drawee's bank has sent us a message stating that the bill was accepted by the drawee.

Now our client is asking us to discount the bill, we are willing to do so, but in the past when we have discounted bills we have always had them in our physical possession. The drawer has endorsed the bill to order or to us.

Should we ask the buyers bank to courier the bill to us? If the bills is sent to us, but the bill is available at the buyers bank, how do we collect payment on maturity.

is there another mechanism for this that i am missing?

Finance

[picant]

Hi Pal,

IMHO, it depends on the drawer endorsement on the draft or bill of exchange, if it is a full endorsement in favour of the bank or "value for collection", in the first case having the bank the property of the draft a discount is ok, in the second case the draft belongs always to the drawer and may only be advanced.
Usually the instructions to the collecting bank are: Return the accepted draft; hold it for collection at maturity under advice of acceptance.(period of time to maturity permitting it)
Other comment appreciated
Ciao