Documentary Collections check0 / 1 answered · 0 correct
Check 1
Who is normally asked to pay or accept in a collection?
Collection Bank Roles
Learn principal, remitting bank, collecting bank, presenting bank and drawee.
Principal
Usually the seller/exporter that entrusts the collection to its bank.
Remitting bank
The bank to which the principal entrusts the collection and which sends instructions onward.
Collecting bank
A bank involved in handling the collection other than the remitting bank.
Presenting bank and drawee
The presenting bank makes presentation to the drawee. The drawee is the party to whom the presentation is made, often the buyer.
Remember thisA collecting bank follows collection instructions; it is not automatically the buyer’s credit guarantor.
Finished this lesson?
Mark it complete. Your progress stays on this device.