Documentary collection is another form of documentary payment system with foreign countries but also in this country, where documents are delivered only at the moment of fulfillment of the condition for collection, which may be:

• delivery of documents against payment,
• delivery of documents against acceptance of a bill (in case of deferred payment)

It is an obligation-free payment tool, where the bank does not enter into its client's obligation.

Types of documentary collection:

• import documentary collection - the Tatra banka client is in the buyer's position
• export documentary collection - the Tatra banka client is in the seller's position

Target group:

• natural and legal persons, but particularly legal persons.

Use of documentary collection:

• The documentary collection is used in cases when the exporter is not willing to supply the goods against flat payment, but on the other hand, there is no need to secure payment for the supplied goods by any security payment tool, as e.g. documentary Letter-of-Credit
• The documentary collection is used also in submitting bills for payment (if the bill is domiciled /due and payable in the bank). The creditor from the bill may request his bank to send the bill to the debtor's bank in his name, and demand the debtor to pay the bill. This is applied particularly in cases when the bill is due and payable in any town or country other than the seat of the creditor from the bill
  

Benefits for the client:

• in the documentary collection, the bank is governed by the Unified Rules for documentary collection published by the International Chamber of Commerce in Paris,
• the importer shall have no access to the goods, unless and until he fulfills the collection instruction (payment or acceptance of a bill). This is ensured only in the event the documents include a disposal document
  bill of lading (shipping document) or any other document which shall prevent the seller to dispose with the delivery
• procurement of collection is less time costly than the documentary Letter-of-Credit, both for the exporter and the importer
• the documentary collection is cheaper compared with the Letter-of-Credit