Import Bill Collection 

Import Bill Collection is a mode of payment in international trade where the buyer makes payments against the seller’s financial or commercial documents.  

The Process 

The process for bill collection is quite simple.  

The buyer and seller enter into a contract where they agree that the buyer will only make a payment after the document collection. The seller then fulfils their consignment as per the orders and sends their documents to their bank.  

The bank then announces the arrival of the documents to the buyer and waits for their payment. Once, the buyer makes the payment, the bank deposits that amount into the seller’s account.  

Simple enough, right? 


Import Bill Collection is perhaps one of the most reliable methods of payment. It is a preferable system for importers as it protects their interests. They don’t need to make any payments until they are sure that they ave received their shipment. They can also negotiate better terms of credit–like when they will make the payment. And they also don’t need to involve themselves in the process, allowing banks to handle their affairs.  

It is not a reach to admit that Import Bill Collection serves the importers and caters to their interests. So, let us look at Export Bill Collection where the exporters have more control over the document movement and release.  

Export Bill Collection  

Here, the seller can instruct their bank to send their commercial or documents on a collection basis to their buyer’s bank. Upon the receiving, the documents, the buyer’s bank will then release payment or acceptance to the seller.  

The Process  

In the export collection bill, the seller and the buyer agree upon a contract where the buyer will make the payment based on the documentary collection.  

The seller complies with their order for the shipment. They also send their collection order from their bank to the buyer’s bank simultaneously. The buyer’s bank then announces the buyer of the arrival of the documents. The buyer has to either make a payment or give their acceptance. The buyer’s bank transfers the payment to the seller’s bank, and the bank credits the amount into the seller’s account.  


The documentary collection is a reliable mode of payment. It favours the exporter as the bank can’t release the documents until they get specific instructions from the seller. It gives them the power and assures that they will get their payment on time.  

Both methods of payment are tried and true. But there are two distinct advantages on either side. What kind of payment you make, in the end, depends on the contract you negotiate with your trade partner.