Bills for Collection is also a mode of payment used for the importation of visible goods to Nigeria.

It is an arrangement whereby the supplier has agreed to sell goods to a buyer and collect payment either at sight or after a period of time, usually 60 days, 90 days or 120 days as agreed by both parties on acceptance of the bill of exchange. Document is handled by Bank in accordance with instructions received from the seller.

This method of payment is often used amongst associate or related companies.

Documentary collections is a more secure method of payment than Advance payment method as goods will be shipped before payment is made.

It provide buyer/ Importer opportunity to enjoy supplier’s credit as payment can be on acceptance basis.

1. Deliver Documents against Payment (D/P) of money owed or
2. Deliver Documents against Acceptance (D/A) of Bill of Exchange or
3. Deliver documents on other terms and conditions – free of payment, pour aval (with avalization).

The parties to a Bills for Collection transaction are as follows:

• The Drawee (Importer/Buyer)
• The Collecting Bank (Buyer’s Bank)
• The Remitting Bank (Seller’s Bank)
• The Drawer (Exporter/Seller)

• Registered Form M
• Shipping Documents
• Exchange Control document (ECD)
• Collection Order
• Bills of Exchange
• Other relevant Regulatory documents