WHOLESALE

Collections

The Collection is a product/ service used for settling foreign or local trade payments. The purpose of the Bills for Collection is to provide our customers with a standard method for settling due amounts relating to the import/ export of goods and services.

A collection bill may be sent at the request of our customer (seller-drawer) to collect an amount due for the supply of merchandise, to the buyer (drawee) in accordance with their mutual agreement either for sight payment (D/P basis) or usance payment (D/A basis). 

Payment to the seller under usance bills could be guaranteed by Al Ahli Bank of Kuwait - Egypt to the bank credit policy requirements.

Product Characteristics

A bill for collection is an amount of money payable by the drawee to a drawer through banks.
Such bills are divided into:

  • Clean Collection: Contains only financial papers (e.g. Draft, Bill of Exchange or promissory note)
  • Documentary Collection: Contains financial & amp; commercial papers (e.g. Shipping Documents)

Payment terms

  • D/P: To deliver documents against payment
  • D/A: To deliver documents against acceptance

The collection bills are either Incoming Collections, a service provided to the buyer/ importer or Outgoing Collections, a service provided to the seller/ exporter.

Avals

Drafts or bills of exchange could be avalized. An aval is an unconditional and irrevocable guarantee by the bank (at buyer end) written on the face of a bill of exchange or promissory note. Collections are governed by the Uniform Rules for Collections, 1995 Revision, ICC Publication No. 522.

Benefits

  • Benefits of a collection to the seller: Title documents could be channeled through the banking system. Faster collection of funds
  • Benefits of a collection to the buyer: He could defer payment until goods arrival (acceptance), thus, obtaining full finance from the seller, having also the ability to obtain finance from banks
  • Benefits of a guaranteed payment to the seller: He receives immediate cash (if the bill is discounted). He is relieved from administration and receivable collection problems and avoids sovereign and buyer risks
  • Benefits of a guaranteed payment to the buyer: He is provided with another form of finance and avoids complex loan documentation

Application Forms / STP Excellence Award

Application Forms STP Excellence Award
Documentary Credit Application 2012 EUR STP Excellence Award
Shipping Guarantee / Bill of Lading or Air Waybill Endorsement Application
2012 USD STP Excellence Award
Export Documentary Collection Application   2013 EUR STP Excellence Award

Letter of Guarantee Application
2013 USD STP Excellence Award
Collection Application for Commercial Papers
2014 EUR STP Excellence Award
Transfer/Bank Draft Application

2014 USD STP Excellence Award



2015 EUR STP Excellence Award
 
2015 USD STP Excellence Award