Export Documentary Collections

In today’s international credit markets, exporters often need to use their financial resources or bank relationships to affect a trade sale. Buyers in Latin America, Africa, Eastern Europe, Asia, and the Middle East may be unable to obtain international credit on their own.

For commercial trade transactions, our Export Documentary Collections offer exporters an alternative payment method to letters of credit. When you ship goods to an importer, MTG retains custody of the title documents, until payment is received or expectance is obtained from the importer.

From wherever they originate, transaction proceeds are remitted to your account within 24 hours of receipt, giving you access to your funds at the earliest possible moment. Export Documentary Collections also let you:

  • Centralize the management of export receivables
  • Track outstanding collections
  • Know when payments are made
  • Improve the reconcilement and administration of your export processing

Unlike letters of credit, the bank does not cover credit and country risk. If you’re comfortable assuming those risks, Export Documentary Collection may be a cost-effective option.

How do Export Documentary Collections work?

An Export Documentary Collection is a method of payment by which an exporter can collect payment from an importer through an intermediary bank, which facilitates the flow of title documents and payment.

The exporter’s bank solicits a payment, on the exporter’s behalf from an importer by sending title documents and a cover letter to the importer’s bank.

The importer’s bank advises the importer of the bill. When the importer pays the bill, the importer’s bank pays the exporter’s bank. When the exporter’s bank receives payment, it promptly credits those funds to the exporter.

You can generate Export Documentary Collections electronically, using MTG to transmit transaction details directly to us from your office. You can also denominate these transactions in a variety of currencies.