Documentary Collection
A bank-handled collection process in which commercial or transport documents are released under stated payment terms.
Professional definition
A bank-handled collection process in which commercial or transport documents are released under stated payment terms. Its precise legal, operational or charging effect depends on the applicable contract, carrier terms, route, jurisdiction and transport mode.
Example
Example: a logistics team records or applies “Documentary Collection” in the relevant booking, document, quotation or shipment milestone.
Where it is used
Used in trade finance & payment operations, documents, systems and commercial discussions.
Common mistakes and things to remember
Confirm the precise meaning in the governing contract, tariff, official rules and provider terms; industry usage can vary.
Source
Use the linked authority and applicable national guidance for current requirements.