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When you ship goods on a collection basis, you have no guarantee of payment. So, before you export to a foreign buyer, 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.
Using Documentary Collections gives you, the exporter, more control over when the buyer actually takes control of the goods. By entrusting your shipping documents to Scotiabank, you can ensure that the buyer 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, on a recourse or non-recourse basis, depending on the buyers creditworthiness.
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.
TRADEXPRESS elite Service
Our Internet-based TRADEXPRESS elite service is an electronic solution that enables you to prepare an export bill collection cover letter and send the collection documents directly to the collecting bank.
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