Direct collections or cash against documents – At times, it is the right choice for some exporters. Dealing electronically, bank-to-bank can be an easy, flexible, and less costly way for you to arrange payment. High-volume export customers often find this method makes transactions move much faster. But to determine whether it’s the right practice for your business requires knowledge of the entire process to guarantee payment before release of your valuable cargo.
Your bank doesn’t process Direct Collections? No worries. Leapfrog has partner banks ready to handle all of your direct collection needs. We will use our partner bank network to offer competitive pricing backed by superior services.
Avoiding Risk in Direct Collections
Payment is normally driven by transit time (cargo arrival) and risky if not documented and managed properly. Monitoring progress, ensuring the right bank gets what it needs, coordination with the transportation company and continual monitoring to be sure the buyer has accepted to pay, are all part of “seeing the process through to completion”— a process Leapfrog takes seriously.
A potential disadvantage in direct collections is the possibility of errors in transport document instructions. A direct collection document that isn’t monitored through the system can languish, tying up funds and racking up additional costs. Leapfrog’s experience, thoroughness, and extra precision can help you avoid this pitfall.
