Direct Collection

From Open Risk Manual


Direct Collection. It is a service for handling export draft collections in which the exporter's financial institution provides the forms that bear the financial institution's own letterhead for mailing documents to the buyer's financial institution for collection.

To the buyer's financial institution, it appears that the documents were sent from the exporter'sfinancial institution. By bypassing unnecessary processing at the exporter's financial institution, it is possible to save time and expenses.