Collections
International Collection is a popular method of payment in which California Bank & Trust serves as an intermediary between you and your customer. On behalf of you as the party initiating the collection, we present a collection item through a collecting bank for payment by your customer. The collecting bank does not credit the funds until it has received good value funds from your customer. We provide services for documentary collections as well as clean collection (without documents).

World financial indicators predict that, as international buyers and sellers become more familiar with each other and political and economic conditions of various countries become more stable and foreign exchange controls less restrictive, Letter of Credit transactions will decline as a payment method. As that happens, clean and documentary collections may become a more common method of payment.

Two common types of collections are:

a. Documents Against Payment (D/P) - With documents against payment, the importer/buyer must pay before the shipping documents are released.

b. Documents Against Acceptance (D/A) - In documents against acceptance, the buyer must accept a usance (time) draft be-fore receiving the shipping documents. Acceptance of the draft is the importer's promise to pay at maturity. Howev-er, should payment not be made at maturity, a bank is under no liability and is not responsible to attempt to collect the past due funds..

To download the pdf documents to your drive, right click on the document and/or file name and select “save target as.”

For more information, e-mail us at IBGInfo@calbt.com or contact your nearest International Trade Finance Officer.