collection

1. General: Process of recovering amounts owed to a firm by its customers.

2. Banking: (1) presentment of a check or draft for payment and, subsequently, receipt of its amount in cash or as a credit entry. (2) Transfer of delinquent or past-due accounts to a collection agency (or a special department set up for the purpose) for full or partial recovery of the amount.

3. Foreign trade: Process through which the global banking system acts on behalf of an exporter (or seller) to collect cash payment or a time draft from the importer (or buyer) in return for documents required for taking delivery of the ordered goods.