If you are interested in learning about Absa import documentary collections in South Africa, check out this guide.
These collections are essential if you are dealing with a new overseas supplier.
The documentary collections are also an efficient tool for settling trade debts.
We will first show you the features of the collections.
Features Of These Documentary Collections
There are two collections documents for import collections.
- Documents against acceptance
- Documents against payment
Documents released to the buyer against acceptance of a bill of exchange are payable at sight or on a future date.
The buyer gets to inspect the goods before making payments.
Documents against payments is a more secure method for the exporter as they are guaranteed payments.
These are the features of Absa import documentary collections in South Africa.
Absa Import Documentary Collections
The exporter sends a bill of lading, certificate of origin, an invoice, and a bill of exchange requesting payments to their bank.
The bill of payment could either be a bill for sign payment or term payment.
Sight payment means that the importing customer should make payments immediately after they are presented to them.
The buyer and the seller can agree for payment at a future date where the importing client endorses the bill of exchange by signing it at the back.
The endorsement should be done before releasing the documents that allow access to the goods.
This is how the Absa import documentary collections work in South Africa.
Now that you know how the collection works, we will show you the benefits.
Benefits Of Absa Import Documentary Collections In South Africa
This is a simple and efficient tool for settling trade debts.
You improve your cash flow if you can negotiate credit terms.
Payments can be made in any freely traded currency globally.
Payments of the imported goods can be made immediately on presentation of the documents or on an agreed future date.
This is all the information about Absa Import Documentary Collections in South Africa.