Definition:

This is an instrument used to direct financial and commercial documents between the exporter and the importer. Citibank^® receives the collection (remittance letter and documents) from the exporter’s bank and delivers the documents to its client against the acceptance of drafts and/or against payment according to the instructions received. With this instrument there is no bank commitment for payment.

Advantages:

	The importer is sure that the export has taken place before paying or committing for payment (typically accepting drafts).
	Consequently, the exporter can be sure that the documents representing the ownership of the goods, will only be given to the importer against payment or acceptance.
	This product can be more flexible for the importer given that if he does not pay on the exact date of maturity, usually there are no actions taken (because it is a product based on confidence between the parties).
	Nevertheless, the exporter can ask for the protest of the draft to be sure of the eventual legal execution in case of non-payment. In a sight collection, the exporter retains the ownership of the goods until the importer pays.
	Since there is not a commitment from a bank, it is mainly used as an alternative for those cases in which the relationship between importer and exporter has become strong, reliable and they share a good credit and performance history.

Please note that:

	Neither the importer nor the exporter need to have a credit line to operate with collections.
	It is an efficient vehicle for dealing with documents, keeping them safe and managing the payments, but note that banks do not review the documents and thus have no concern regarding their wording.

Pricing:

	Advising fee: a percentage of the total amount of the collection with a minimum expressed in US$.
	Other costs: protest, managing unpaid transactions, etc.

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