Methods of payment

Open account
Documentary collections
Letter of credit
Cash in advance
Process of documentary collections
Direct Collection - Time Draft
1.
Seller makes shipment to buyer
2.
Draft, documents and direct collection letter sent to buyer s bank with co
py of DCL to seller s bank
3.
Time draft and invoice sent to buyer
4.
Accepted (signed) draft returned to buyer s bank
5.
Title documents released to buyer for Customs clearance
6.
Advice of acceptance sent to seller s bank
7.
Acknowledgement of acceptance sent to seller
At maturity and w/ buyer s