Collection glossaryCollection glossary

International collection is a simple way to handle payments, however some terms and expressions used may not be immediately familiar if you have not used international collections before.

You will find an explanation of relevant terms and expressions you may meet in connection with collections here.

 

GlossaryGlossary

Collection term Explanation
Cash against documents (CAD)  Payment against document
Clean collection  When only a draft is sent for collection (See Financial documents below)
CMR Waybill Overland transport document
Collecting bank The bank through which documents are sent for presentation
Collection order The seller's instruction to a bank to send a set of documents for collection
Commercial documents Documents concerning goods or services
Consignee Recipient of goods
Consignor Sender of goods
Direct collection Used when an exporter sends documents and an instruction letter directly to the foreign bank
Dishonour Lack of payment or lack of acceptance
Documents against acceptance (D/A) Collection instructions stating that the documents may be handed over to the buyer against its acceptance of a draft
Documents against payment (D/P) Collection instructions stating that the documents may be handed over to the buyer against payment
Drawee Person or company that will pay the collection
Drawer Person or company that will receive payment under the collection
Due date Date on which payment is due
Financial documents Drafts/Bills of exchange sent for payment unaccompanied by other documents
For account of To be paid by

MoreMore

Documentary credit glossary

If you are interested in documentary credit terminology, see the documentary credit glossary.

See glossary
Guarantee glossary

If you are interested in guarantee terminology, see the guarantee glossary.

See glossary