A documentary collection:
Having shipped the goods, your supplier presents the necessary documents, together with their instructions, to their bank which forwards the documents to your bank for payment. With a Documentary Collection against payment (D/P), import documents are released to you on payment. With a Documentary Collection against acceptance (D/A), the documents are released to you against your promise to pay. If your supplier requires a bank guarantee of payment then a request for avalisation must be included in the collections instructions. This guarantee can only be provided if you have pre-arranged such credit facilities with the bank.
