Documentary Collections

Secure your international trade transaction journey affordably

Overview

A documentary collection is a trade transaction in which the exporter hands over to their bank the task of collecting payment for goods from the importer’s bank. The exporter’s bank sends the goods shipping documents to the importer's bank together with the payment instructions.

The export documents are only released to the importer against two conditions.

Documents against Payment Collection (D/P): The importer receives the goods delivery documents only against payment.
Documents against Acceptance Collection (D/A): Delivery documents are handed over against acceptance of a bill of exchange or a promise of payment at a specified time.

BANK OF AFRICA can act as a collecting bank for an exporter or paying bank for an importer.

MULTI-CURRENCYMulti-currency funding in currency of the payment obligation

TRADE SECURITYSafer trading option compared to open account (paying cash to supplier)

Flexible PlanFlexible and affordable repayment periods up to 12 months

ANNUAL LIMITSAnnual financing limits available to reduce delays in processing of your recurring trade finance requests

TAILOR-MADE STRUCTURETailor-made credit structure according to your business cycle

QUICK ProcessingQuick application processing

What You Get

Securely enter a trade by reducing certain risks, such as goods arriving late or not meeting specifications
Importers can check the review copies of the shipment documents before payment
Importers can make the payment after they receive the documents from their banks by accepting bills of exchange
Access financing to purchase goods in a way that matches up with your domestic cash flow requirements
It is less expensive and less complicated than a letter of credit
Free up available working capital by negotiating more favorable commercial terms with suppliers and benefit from prepayment elimination
There when you need it. No delays. Enjoy flexibility allowing access to funds when you need them most matched to your specific trade flows

Securely trade through a worldwide acceptable credit risk control and payment framework. The documentary collection gives a payment warranty to the exporters. There is no chance of being deceived in this approach
Enjoy the option of obtaining pre or post-shipment finance to help satisfy working capital requirements
Hold the title of goods until the payment is made
Improve the administration of your export processing
Access quick funding based on confirmed orders for the production and supply of the goods to importers/buyers
Enhance your business throughout the world
Stay in control of your transaction
It is less expensive and less complicated than a letter of credit
Negotiate more favorable commercial terms with buyers (importers) and provide a more competitive offering to grow your business
There when you need it. No delays. Enjoy flexibility allowing access to funds when you need them most matched to your specific trade flows

Download our services and products pricing guide for more information.

General Business Credit Application Requirements

Fully filled in business loan application form (Available at a branch or delivered to your office)
Financial credit bureau card for the borrowing entity
Business bank statements for past 12 months
Business financial statements, including and income statement, balance sheet and cash flow
Passport size photograph of each director
Copy of valid identification card of each director
Valuation report for the property / assets to be pledged as collateral (where applicable or requested by the Bank)
Business plan and an updated business profile
Tax identification number (TIN) and tax clearance certificate
Formal written request stating the amount, purpose, tenor, source of repayment and proposed security
Board resolution to borrow
Trading license
Any other information as may be requested by the Bank, depending on the nature of the request. Our Relationship Management team will guide you on the process