Documentary Collections

If you export goods and services, let expert bankers at California Bank & Trust serve as an intermediary between you and your trading partners through our Documentary Collection services. With this method of payment, we work on behalf of you, the exporter, presenting collection items through the buyer's bank for payment by your customer. The collecting bank will not release your documents until your payment instructions have been acceded to; either D/P or D/A.

We provide documentary collection services (and "clean" collections, drafts without documents) through two of the most common types of collections:

  • Documents Against Payment (D/P): the importer/buyer must pay before the shipping documents are released.
  • Documents Against Acceptance (D/A): the buyer must accept a usance (time) draft before receiving the shipping documents. Acceptance of the draft is the importer's promise to pay at maturity.

Documentary collections should be used in situations where there is a trust relationship between buyer and seller. Under Documentary Collections, banks act as intermediaries between buyer and seller in exchange for title documents and payment. There is no payment guarantee or bank obligation to pay as with a Letter of Credit.

To use these services, download these forms. Or contact an International Banking Trade Finance Specialist for more information.

Drafts Against Payment
Can be used for advance payments from the buyer before shipment.

Documents Against Payment
Can be used for payment before title is released to the buyer.

Documents Against Acceptance
Can be used for payment by trade acceptance in lieu of cash.

Collections Field Definitions
Can be used for completing the Documents Against Payment form.