Hannah Abraham explains how documentary collections fit within the four primary international trade methods of payment. Hanna also shares when a documentary collection should be used over a letter of credit.
Lori Crever: Hi. I'm Lori Crever and today, I'm joined by Hanna Abraham, relationship manager with Wells Fargo International Trade Services, to talk about documentary collections. Hanna, thanks so much for coming in today.
Hanna Abraham: Thanks for having me, Lori.
Lori Crever: What are the four international payment methods?
Hanna Abraham: The four international payment methods are cash in advance, which is the preferred option for exporters, open account, preferred option for importers, letters of credit and of course, documentary collections.
Lori Crever: When should a documentary collection be used over a letter of credit?
Hanna Abraham: Documentary collection should be used when a buyer and seller are comfortable transacting a trade but would like the bank to facilitate and control document the flow.
Lori Crever: What is Wells Fargo's competitive advantage for processing documentary collections?
Hanna Abraham: Great question, Lori. Wells Fargo has more than 200 certified documentary specialists processing more than 500,000 transactions a year. There are over 15 trade offices around the world. We also have an extensive global financial institution credit line availability allowing exporters to discount analized drafts from banks in Brazil, United Arab Emirates, Morocco, India and Colombia as well as constantly evolving new markets.
Lori Crever: Hanna, thank you so much for coming in today to share your expertise and your insights.
Hanna Abraham: Thanks for having me.
Lori Crever: If you'd like to learn more about how to position your company for success in the global marketplace, talk to your Wells Fargo International Trade Services relationship manager.