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
Maturity The date a payment matures or falls due
Past due An accepted bill of exchange which is not paid at maturity
Presenting bank The bank that presents an import draft or documents to the importer against payment or acceptance
Promissory letter A written promise to pay a given amount on a given date
Promissory note Draft issued by the buyer
Protest An endorsement by a judge on the reverse of a draft, confirming that the draft has not been paid or accepted
Remitting bank The bank that sends the collection documents on behalf of the exporter
Tenor The period of deferred payment given by the exporter
URC 522 The international rules for collections: Uniform Customs and Practice for Collections, ICC Publication No. 522
Waive charges/interest For the buyer to decline to pay charges or interest
Written undertaking A written statement that a party will pay a given amount on a given date

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Documentary credit glossary

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

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Guarantee glossary

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

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