Import collection is a good alternative to an advance payment as the goods can be paid after they have been shipped.
A method of payment where banks forward documents
First, you agree with the supplier that payment is to be made by Collection. The exporter/seller opens the collection and delivers the goods and then sends the documents and a draft, if required, to its bank. The foreign bank forwards documents to collecting bank (Nordea) and we will advise you on arrival of the documents. As the buyer you will receive documents when you either pay the collection or accept the presented draft.
When you and the seller have agreed to make payment on a collection basis, it is good if you as a buyer provide the seller with the right contact information to your bank, thus making sure the documents will be routed directly to Nordea, Trade Finance. Please find Nordea's contact information in the blue contact box on the right hand side.
When documents have arrived to our department, you will receive information on your import collections electronically through Nordea's Trade Finance Net Service or by mail if you’re not an on-line customer.
Your benefits with Collections
- You avoid advance payment
- You can obtain credit
- The seller can grant you credit. Thanks to collection it will be easier for the seller to grant you a term of payment.
- You can check the documents at the branch before payment.
- International rules. The ICC Uniform Rules for Collection URC 522 regulate the terms and conditions related to the documents as well as to the time and method of payment.