International business

Documentary collections and documentary credit

International trade with tailor-made risk mitigation.

Companies who build relationships of trade abroad often look for ways to mitigate the risks of international transactions. And that is precisely where ING Trade Finance Services can help.

  • Documentary credit and documentary collections minimise your risks

    You want to be sure you will get paid or that goods and services you have ordered will actually be delivered. There are different ways to build that certainty into the agreement. Documentary credit is the safest. However, it is slower and typically more expensive. Documentary collections are cheaper and faster but offer less certainty.

  • Which method is right for you?

    You should base your choice on the extent of your relationship with your trading partner while also taking the political situation of the country in which your business partner is based into account.

  • Documentary credit: maximum certainty

    In the case of documentary credit, the importer pays upon production of certain clearly defined documents that have been checked by the bank. As a supplier/exporter, you are certain of being paid once the goods are shipped.

  • Documentary collection: faster and cheaper settlement

    Documentary collection is no guarantee of payment. But it can ensure that the importer/customer cannot take delivery of the goods without having paid or having signed a bill of exchange. The bank acts as an intermediary in this case, passing on certain shipping documents and collecting payment.

  • Limitations with documentary collections

    Since the shipping documents typically accompany the goods themselves in the case of road transport, documentary collections are only suitable for maritime shipments where the ship's bill of lading is sent separately. Please note: the bank only checks the actual content of the bill of lading in the case of documentary credit.