Documentary Collections

When buying or selling goods, documentary collections provide an alternative payment arrangement to cash in advance or open account terms. In documentary collections, after the goods are shipped, the documents (including a bill of exchange) are forwarded by the seller to the buyer's bank with instructions to deliver the documents to the buyer after collecting payment (or on a promise to pay on a specified date).

Key benefits

1. Reduces your operating costs

  • Reduces your operating costs when established buyer and/or supplier relationships do not necessitate the use of Documentary Credits
  • Allows you to do more business without using your line of credit or specific Import Documentary Credit (Import Letter of Credit) facilities

2. Convenient

  • Credit approval is not required
  • Once the buyer agrees to the terms of the collection, documents are released to the buyer and goods can be cleared through customs
  • CIBC Trade Finance will track the transaction status of your documentary collections

3. Access to trade finance expertise

  • Our trade finance experts provide you with structuring, mitigation and financing expertise and up-to-date country and trade risk guidance to support and expedite your trade transactions

Is it for you?

Documentary collections may be for you if you:

  • Engage in import and/or export business activities
  • Wish to minimize the risk of dealing on open account terms or providing cash in advance of receiving goods
  • Want to have a certain degree of control over the goods being imported or exported
  • Want to reduce your import costs and credit constraints

Please Note:

The above is intended to be only a general description of this product and its features. Certain conditions, restrictions and exceptions may apply. CIBC reserves the right to change or discontinue this product or any of its features at any time. This product and its features shall be subject to the terms and conditions of the applicable agreement governing its use. For more information, please contact our Trade Finance team.

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