Documentary collection

Documentary collection is a well-known and widespread manner of settlements used in international trade where the bank acts as the intermediary in the transfer of the accompanying documents of goods and payment for goods.

  • it helps to avoid payment in advance;
  • the accompanying documents of goods are delivered
    to the buyer by an independent intermediary, the bank;
  • international rules are observed in the transaction.

Course of Collection Transactions

  1. The seller ships the goods once an agreement about the use of collection has been reached with the buyer.
  2. The seller then submits the accompanying documents of goods to its bank for collection with instructions of how they should be issued to the buyer.
  3. The seller’s bank sends the documents by courier to the buyer’s bank.
  4. The buyer’s bank notifies the buyer of the arrival of the collection documents and the terms of their issue.
  5. The buyer gives its consent to the collection amount being debited from its account or signs a bill of exchange with a payment date.
  6. The bank hands the accompanying documents of goods over to the buyer and the seller receives the money due for the goods.

Clients who wish to submit documents for collection have to fill in the collection form of Swedbank and deliver it with the accompanying documents of goods to the Documentary Payments Department of Swedbank at Liivalaia 10, Tallinn.

You can also read more about collection in the Swedbank brochure Documentary Credit, Collection and Bank Guarantees .

The International Chamber of Commerce (ICC) has issued the rules ICC Uniform Rules for Collections, Publication No. 522, abbreviation URC 522, that regulate the processing of collections.

Detailed information about the options of using collection is available from:

  • Swedbank Documentary Payments Department
  • Liivalaia 10 15040 Tallinn Estonia
  • 888 1334, 888 1632
  • E-mail: dokmaksed@swedbank.ee.