Documentary Collections
A simpler, lower-cost way to secure payment on trusted trade.
What it is
In a documentary collection, banks handle the exchange of shipping documents for payment — but without the payment guarantee an LC provides. The exporter ships, then routes documents through the banking system so the importer can only take possession of the goods once they've paid or accepted a payment obligation.
When to use it
Best suited to established trading relationships where the parties trust each other but still want the banking system to control the document-for-payment exchange.
How it works
Ship & submit
Exporter ships and submits documents to Kingstar.
Route
Documents are sent to the importer's bank.
Pay or accept
Importer pays (D/P) or accepts a term draft (D/A).
Release
Documents — and control of the goods — are released.
Benefits
- Lower cost than a letter of credit
- Banks control the document exchange
- Simple, well-established process (URC 522)
Not sure which structure fits?
Tell us about your trade and we'll point you to the right instrument or account.