Export collection is a frequently used payment method in international trade. If you choose to send shipments by sea, and if the payment term is CAD (cash against documents), Export Collection can be a way to secure your payment after shipment of goods, or at least remain in control of your goods.
First you agree with the buyer that payment is to be made by Collection. Then you ship the goods and send the documentation (invoice and transport documents etc.), to Nordea, which will forward the documents to the buyer's bank. The buyer will get access to the documents after having made payment or accepted to pay on a future date.
When you use export collection, both the commercial and the political risk still remain with the seller, since the banks involved don’t have any payment obligations towards the seller. The bank monitors the collection instructions and reminds the buyer if the payment is delayed.
You can process your collections on the Internet via Trade Finance Global.
You retain control of goods until they are paid for or a future payment is accepted.
Possibility to receive financing. Please contact your Nordea local branch if you want to know more.
International rules. The ICC Uniform Rules for Collection URC 522 regulate the terms and conditions related to the documents and to the time and method of payment.
The seller has the right of possession to the goods until the documents have been redeemed.
The banks involved will act according to the internationally accepted rules of the International Chamber of Commerce.