Documentary Collection

MTB BANK offers a service of documentary encashment. Documentary encashment is a form of settlements, when the bank acting according to the instructions of its customer (seller) sends received from him documents supporting shipment of the goods to buyer’s bank. In its turn, the buyer’s bank acts on the basis of received instructions with the purpose to deliver the documents to customer of the bank (buyer) against payment or acceptance of bills of exchange or on other terms. For more information about all documentary transactions, including about letters of credit, turn to a consultant.

Advantages 

Due to this banking transaction, an individual or legal entity of Ukraine can reckon upon:

• financial availability,
• full bank guarantee of delivery of supporting documentation within the established period and solely upon repayment of full cost of the goods,
• legal transparency,
• low cost of banking transaction.

Thus, the advantages for the seller are that the documents are not delivered to the buyer until he makes payment. The benefit for the buyer is that payment is made for already supplied goods, which means that money is not distracted from circulation.

Conditions for service provision 

MTB BANK accepts and transfers net and documentary encashment. Net encashment relates solely to financial documents (promissory notes and bills of exchange). Documentary encashment relates to commercial documents (invoices, bills of lading, acceptance certificates, various certificates, etc.).