Import Collections
Commercial Bank acts as an agent on behalf of the Seller and/or seller's bank by holding the commercial documents covering the shipment i.e. the title documents until payment is received from the Buyer.
For the Buyer , we act as the Collecting Bank, accepting the title documents from the Seller's Bank and delivering them to the Buyer upon payment. In cases where the Seller is providing credit to the Buyer ,the Buyer must accept a time draft( an order signed by the Seller directing the Buyer to pay a specified amount on a specified date to the Seller or his bank) and/or authorize us to debit their account and pay on the agreed payment date ie the due date in order to take possession of the shipping documents. The Buyer of course has the option of refusing to take delivery of the goods/documents and refuse payment.
Commercial Bank offers the following types of Collections:
• Sight collections-Title documents to be delivered against payment.
• Usance collections-Title documents to be delivered against acceptance of time draft and/or signing the undertaking to pay on due date.
• Guaranteed collections- Where we also guarantee to pay on due date, enabling the seller to receive assured funds on maturity.
