In our guide today, we will briefly look at Absa export documentary collections in South Africa.
This is a trade and working capital solution to help you make and receive payments securely.
The export documentary collections guarantee that you will receive payments for goods you export.
We will first show you the key things to note about this service.
What You Need To Know About Absa Export Documentary Collections
The collections are governed by International Chamber of Commerce rules meaning that responsibilities and liabilities are clearly defined and standardized worldwide.
If the collecting bank has guaranteed payment of the bill of exchange, Absa can discount the bill without affecting your facilities.
This improves your cash flow by receiving funds earlier than the due date.
The payments can be collected in any freely traded currency.
You can receive payments immediately on the presentation of the documents to the buyer or on the agreed future date.
These are the key things to note about Absa export documentary collections in South Africa.
We will now show you exactly how this collection works.
Absa Export Documentary Collections
The exporter is required to send documents that allow access to the goods being imported to their bank.
The documents required include a bill of lading, a certificate of origin, and an invoice.
The documents should accompany a bill of exchange requesting payment according to the agreed terms.
Payments are requested in two ways, namely:
- Sight payment
- Term payment
Sight payment is requested immediately after the goods are presented to the importing client.
Term payment is where the exporter and the importer agree on a future payment date.
Importing customers must endorse the bill of exchange by signing it to indicate that they have accepted the payments before they get the documents that allow them to access the goods.
You get to choose the delivery channel to use when originating the collection.
This is how the Absa export documentary collections work in South Africa.
We will now show you the benefits of this program.
What Are The Benefits
The program is a simple operation in that it is easy and less traumatic, thus giving you peace of mind as you export goods.
The service improves cash flow on your side as the exporter.
You can get discounts for a guaranteed bill before the bill’s due date.
The process is convenient and reduces export risks.
These are the benefits of Absa export documentary collections in South Africa.