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The main risk of shipping goods on a collection basis is that you have no guarantee of payment once you have shipped the goods. Prior to shipment, you must satisfy yourself that the buyer is of good reputation and financial standing, and has the necessary import and currency permits to facilitate payment to you.
Documentary Collections gives an exporter greater control as to when a foreign buyer actually takes control of the goods. By entrusting, your shipping documents to Scotiabank you can ensure that foreign buyers cannot take possession of the goods until either payment is made or a bill of exchange has been accepted. If you have given your buyer credit terms, you may be able to discount the accepted draft at Scotiabank, either on a recourse or a non-recourse basis, depending on the credit-worthiness of the buyer.
Direct Collections
If you are an export customer with high volumes, direct collections are an alternative method of collection. The direct collections approach reduces processing time and accelerates payment because you or your freight forwarder can prepare and mail the collection documentation directly to the collecting bank in the buyer's country.
Instructions are provided for the remittance of the proceeds directly to your Scotiabank account. We will follow up on your behalf if payment is not received.
Electronic Solution for Direct Collections Letters
TRADEXPRESS elite
Our Internet-based service enables you to prepare an export bill collection cover letter and send the collection documents directly to the collecting bank.
Contact us or visit your nearest Scotiabank branch for more information about Documentary Collections, and how you can easily transfer your existing business to Scotiabank.
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