To assist SMEs in trade transactions, financial institutions also provide payment services.
1.Outward/Inward Bills for Collection
Assists customer in making payments for trade transactions.
- Documents are channeled through the financial institution with specific instructions
- Financial institutions handle documents on instructions received to:
- Obtain acceptance and/or payment
- Deliver commercial documents against acceptance and/or against payment
- Deliver documents on other terms and conditions
- A safe method as payment can be deferred by the buyer until the goods arrive
- Customers will have time to inspect the documents before paying/accepting
- Documents of value are not released to the buyer until payment or acceptance has been affected
- Can seek legal remedy in case of non-payment on maturity date