Documentary Import Collections are payment mechanisms, less expensive than Letters of Credit but provide more security to the supplier than open account transactions. Import Documentary Collections boost trading relationships by reassuring suppliers of their payment and safeguards the importer’s title to goods. The two most common conditions for release are:

Documents against payment (D/P): documents released only if the importer makes immediate payment.

Documents against acceptance (D/A): documents released only if the importer accepts the accompanying draft thereby incurring an obligation to pay at a specified future date.