Some foreign suppliers will agree to ship without a letter of credit. However, they will request that the shipping documents be presented via your U.S. bank and that these documents be released only against payment (you will need the documents to collect the goods up from the carrier and/or to perform Customs clearance.) This arrangement is called a Documentary Collection (sometimes referred to as a Sight Draft or Time Draft.)
An Export Documentary Collection is similar to an Export Letter of Credit. Although not as safe as an Export L/C, as the bank does not provide any payment guarantee, you do have the assurance that the documents are not released to the buyer until they have paid for them.
Export Documentary Collections can be processed through our online banking system, UMB Global Trade.
Copyright 2014, UMB Financial Corporation
“UMB” – Reg. U.S. Pat.& Tm. Off.
When you click links marked with the “‡” symbol, you will leave UMB’s Web site and go to Web sites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other Web sites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.