2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The collection form of payment arose during the development of international trade. It is not known exactly when the first operation was carried out, but today collection settlements play an important role in export-import operations, which indicates their demand. However, this rather convenient form of payment has not been actively spread in Russia, which is associated with the imperfection of the legislation, as well as the low business culture of entrepreneurs.
The basic payment scheme for collection is quite simple. It contains such sides as:
- principal - a person who instructs the remitting bank to carry out a collection operation;
- remitting bank;
- the bank that receives the funds (collecting);
- bank that provides documents to the payer (representing);
- collection payer.
Settlements for collection are accompanied by the following general procedure:
- the principal and the payer draw up contractual documents, in accordance with which the principal ships the goods;
- principalreceives documents from the carrier and transfers them to the remitting bank.
The latter checks the set of documents (mainly for compliance of the external features of the documents with those indicated in the collection).
If there are no errors, the remitting bank sends them with a collection order to the collecting bank:
- the bank (collecting or other representing bank) transfers the documents and the collection order to the payer for verification. After that, the payer pays the required amount, receives documents;
- funds are transferred to the remitting bank, which credits them to the account of the trustee.
Calculation by collection assumes that the package of documents for products can include both exclusively financial documents (net collection) and commercial papers (documentary collection).
When issuing a collection order, one of three schemes can be selected:
- documents against payment. The scheme applies if the collecting bank can receive payment immediately (sometimes in cash);
- "documents against acceptance" scheme, when the drawee issues a bill of exchange;
- collection operation with acceptance. The bank (collector) transfers the bill of exchange to the payer for acceptance, after receiving which it stores both the bill and the package of documents until payment is received. Further, the documents are transferred to the payer.
What are the convenient and inconvenient settlements for collection? On the one hand, this form provides a faster turnover due toseparation of the process of movement of goods and payment. It is also convenient that the payer receives the right to the goods without the need to withdraw funds from circulation in advance. But it should also be taken into account that collection settlements are quite risky for the principal (supplier), who can send the goods with a certain probability of the payer's refusal to fulfill payment obligations. In addition, there is a time lag (often quite large) between payment and receipt of cargo, which can move by sea from one port to another for more than a week.
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