What Is The Difference Between Remittance And Collection?

The way of collection is for the exporter to draw the bill together with the shipping documents to entrust the exporter's Bank to collect the goods from the importer by collecting the bank from the place of import.

(1) types of collection

D / P (D/P), D / P and D/P sight and D/P after sight; payment by documents (D/A).

(2) the parties and general procedures of the collection

The parties to the collection include the trustor, the collecting bank, the collecting bank and the drawee.

General procedure of collection: filling in collection, collecting bank collection, collecting bank to importer, importer payment, collecting bank to pfer payment to the receiving bank, and collecting bank pferring the money to the exporter.

(3) the characteristics of collection.

(4) international practice of collection.

(5) matters needing attention in the use of collection payment.

The collection payment method is based on the commercial credit. Once the importer refuses to pay, the exporter will take great risks. Therefore, the collection method should be paid attention to: the importer's business style and credit must be strictly controlled.