Documentary Collections

A documentary collection transaction is initiated by the seller, who dispatched goods to the buyer. At the same time, the seller entrusts the related documents (which typically includes transport documents and commercial invoice) to its bank for collection of the sale proceeds, and the delivery of the documents to the buyer, according to the terms of the sales contract. The seller’s bank will ask a correspondent bank in the buyer’s country to deliver the document to the buyer against payment of the amount due (Documents Released against Payment – DP) or against acceptance of a term bill of exchange (Documents Released against Acceptance – DA).

	Applicable Products	Description	Key Risks (Non-Exhaustive)
Client Purchasing On Documentary Collections	Documents Against Payment (DP)/ Documents Against Acceptance (DA)	Handling import documents on DP (Sight) or da (Usance) terms. No credit risk for handling	Operational risk
	DA Avalisation	Bank co-accepts to pay for a DA document	Co acceptance by Doha Bank to pay at maturity. Doha bank depends on applicant to pay at maturity
	Documentary Collection TRS	Import loan may be granted to settle payment under documentary collections. Tenor depends on financials	Funded exposure on Doha Bank client. Doha bank depends on client to pay at maturity. Even though goods are pledged favoring Doha Bank, this product remains high risk
Client Selling On Documentary Collections	Documents Against Payment (DP) / Documents Against Acceptance (DA) / DA Avalisation	Handling export documents on DP (Sight) or DA (Usance) terms. No credit risk for handling	Operational risk
	Discounting Avalised Bills on Bank Risk	Funded exposure. Dependency on availability of country and bank limits	While no exposure on CIBG client, Doha Bank remains at risk as Doha Bank has dependency on avalising bank to pay
	Discounting Bills on Client Risk	Export bills under documentary collection may be discounted on client risk	Funded exposure on Doha Bank client. Primary source of payment will be buyer (drawer) of Doha Bank client. However, in case of non-receipt of funds from drawee, Doha Bank will depend on Doha Bank client to recover funds.

Indicative Risk : NIL / MODERATE / HIGH / VERY HIGH

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Doha Bank’s retail, commercial and corporate products and services are granted at our sole discretion and are subject to the Bank’s terms, conditions and acceptance.