collecting bank
Definition
In documentary credit, the bank (usually the buyer's bank) that collects cash payment or a time draft from a buyer, in exchange for bill of lading and/or other documents which enable the buyer to take delivery of the shipment. The collecting bank then forwards the payment to the remitting bank (usually the seller's bank) for eventual remittance to the seller.
Mentioned in these definitions
Popular 'Accounting & Auditing' Terms
collecting bank in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/collecting-bank.html
