The concept and essence of calculations under the collection
Collection is the method of calculation between the parties, which is not the provider, and the Bank receives the amount due or acceptance of payment from buyer's Bank. The basis for this are monetary, settlement or commercial documents. The requirement of the Bank from the creditor about the withdrawal of the debt from the debtor is carried out by means of a collection order.
At the same time, banks in these operations serve only as the intermediary link, and is not responsible for non-payment of documents by the buyer.
Distinguish between clean and documentary collections. In the latter case, documents are required which confirm the fact of delivery (invoices, invoices, etc.)
In international trade, the collection is the order of the Bank to the exporter to the importer the payment for the transfer of supporting documents and transfer the money to the exporter without any obligation on the part of banks. Unlike letters of credit, collections is used when establishing a trust relationship between the seller and the buyer.
To reduce the risk of insolvency of the buyer and the impossibility of collecting payment documents of suppliers often insist on receiving a Bank guarantee.
Concept and types of collection orders
Collection orders are unified form number 0401071. They can be used in three main cases:
- when the indisputable order of collection of money set by law - in this case, the collection order must contain the reference to the law;
- for the recovery of Executive documents in the document should be a reference to a writ of execution, its date and the case number and the name of the authority that issued the decision; such collection orders are accepted by banks only with the application of the original or a duplicate of the Executive document;
- provided by the payer to the Bank the right of withdrawal in favor of the creditor (supplier) - for example, the payer writes an application to the Bank with permission to exhibit their supplier collection orders under the contract.
Distinguish between direct debiting (debiting shall be made without the request of the account holder) and acceptance (cancellation is made after confirmation of the account holder) collection order. Without further instructions, for example, can put the tax or Pension Fund in identifying the tax debt. In this case, banks are not considered objections of taxpayers relating to the debiting of their accounts on an uncontested basis.
