Advantages
For the importer
- A collection helps the importer minimise the risk of the exporter not fulfilling the delivery terms.
- In import documentary collection, the importer can review the documents received before payment.
- Lower costs than for an import letter of credit.
For the exporter
- They provide certainty to the exporter that the documents will be delivered to the importer upon payment or acceptance.
- Lower costs than for an export letter of credit.