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
Learn about our fully automated TRADEXPRESS elite service, which provides a full range of import letter of credit services, from application submission through to expiry, and provides all related data transactions electronically for your reports.
Indicates a trademark of The Bank of Nova Scotia, used under license.
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