Mixed Payment Documentary Collection & Agent's Commission

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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dkiruy
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First Name: DANIEL
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Mixed Payment Documentary Collection & Agent's Commission

Post by dkiruy » Fri Mar 21, 2014 5:25 pm

Docs under collection received.2% commission to be paid to agent.Bill is payable 50%sight and 50% usance at 90 days BL date.How should the bank pay the agent:
+2% of the sight payment ...
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picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Clear instructions

Post by picant » Sat Mar 22, 2014 1:52 pm

Hi Pal,

IMHO, the remitting bank must give clear instructions; agent's commission could be paid on first partial payment or pro rata depending if the agent is responsible for the payment too, so called "Del credere".
Other comments appreciated
Ciao
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