Collection order - settlement document in the mediation of the banking operations of collection, which is formed by the lender for the bank.
Through it, he will claim the amount owed to the payer on an uncontested basis.
The concept and essence of the documentary collection
Collection is the way of settlements betweenparties, where no provider and the bank receives the amount due or the acceptance of payment from the buyer's bank. The reason for this are the financial, design or trade documents. The requirement by the lender bank about reclaiming the debt with the debtor is carried out by means of the collection order.
At the same time, banks in such transactions appear only as an intermediary link, and are not responsible for non-payment by the buyer documents.
There are clear and documentary collection. In the latter case the required documents, which confirm the fact of delivery (delivery notes, invoices, etc.)
In international trade Collection - this orderbank from the importer to the exporter to receive payment when sending him the supporting documents, and transfer money to the exporter without obligation on the part of banks. In contrast to the letters of credit, collections used in establishing a trusting relationship between the seller and the buyer.
To reduce the risk of insolvency of the buyer, and the impossibility of payment for collecting documents Suppliers often insist on providing them with a bank guarantee.
Concept and types of collection orders
Collection orders have in Russia a unified form under number 0401071. They can be used in three main ways:
- When an indisputable order of collecting money is set by law - in this case, the collection instruction should contain a link to the legality
- To collect on the executive documents - inthe document should refer to the writ of execution, its date and case number and name of the authority which made the decision- such collection orders are accepted only by banks from the original application or a duplicate of the executive documentation
- Provided that the payer's bankthe rights of debiting the funds in favor of the creditor (supplier) - for example, the payer wrote to the bank statement with the permission to exhibit his collection orders to the supplier under the contract.
There are non-acceptance (write-off is carried outwithout the account holder's request) and acceptance (cancellation is made after confirmation of the account holder) collection orders. Without further orders, for example, can put the tax or pension fund in the identification of tax arrears. In this case, banks are not considered payers objections concerning the write-off of money from their accounts on an uncontested basis.