Export Documentary Collections

 

Are your overseas buyers slow in paying? Do they want extended terms? Could you increase sales if you could better manage the risk?

One way to reduce your risk is to maintain control over the documents your buyer needs to take possession and legal title of the goods and to clear customs. By holding the Bill of Lading, Commercial Invoice and other documents until the buyer pays, you’re much more likely to receive prompt payment of the full amount.

Acting as your agent, Huntington does the work for you.

We’ll send your documents and instructions to our correspondent bank closest to your buyer. They’ll contact the buyer, and exchange the documents for payment. If you have allowed for it, we will exchange the documents for the buyer’s acceptance of the draft, creating an unconditional payment instrument due on the date you have specified.

Huntington will maintain electronic communications with the foreign bank, following up to ensure receipt and to track the progress. If you use collections frequently, we will send you monthly reports itemizing activity and listing outstanding items.

How do Huntington Export Documentary Collections help your business?

  • Reduce your risk by controlling the documents.
  • Get your buyers to pay on time.
  • Increase your sales by offering extended terms.
  • Save on banking fees if the alternative is a letter of credit or export insurance.
  • Save time by allowing us to handle the collection activity.
  • Monitor your collection activity through our monthly reports.

When should you consider Export Documentary Collections?

If any of the following is true, contact us for more information.

  • An existing buyer is becoming slow in paying.
  • You are concerned about your buyer’s credit, but don’t want to require a letter of credit.
  • You could make more sales if you allowed extended terms.
  • You are selling to a country where collections are customary.

To learn more about Export Documentary Collections, call your Banker or International Specialist. You can also call International Direct at 1-877-480-INTL (4685) Monday to Friday, 8:00 a.m. to 5:00 p.m. ET. Or email us at International@huntington.com.