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Collection
 
Clean Collection
CMB collects the Bills of Exchange/Drafts without commercial documents presented by you. Alternative credit is available:
Immediate credit: Your account will be credited immediately upon CMB’s account is credited by the foreign remitting bank within 1-2 working days after its receipt of your drafts according to the terms of the collection agreement between CMB and the remitting bank. Credit by this means is subject to recourse if the drafts are dishonored by the drawee upon presentation.
Credit after final collection: Your account is credited only after CMB receives the payment by the drawee from the foreign remitting bank.

Benefits
Safer: Presentation of bills or drafts is done by banks.
Faster: Collection time is sharply reduced by using CMB’s “immediate credit” agreements with its global correspondents.
Documentary Collection
CMB collects payment of your commercial and financial documents from the importer through foreign collecting bank. There are two methods of payment: Documents against Payment (D/P) and Documents against Acceptance (D/A). 

Benefits
Easier process: Easier and cheaper to operate than Letter of Credit.
Reduced risk: Title of goods is transferred only after importer’s full payment (D/P) or acceptance of a draft (D/A). Less risky for the exporter compared with Open Account (O/A) payment terms.
Inward Collection
CMB, at its foreign correspondent’s instructions and on behalf of an exporter, presents commercial and/or financial documents to you, as an importer and collects your payment under Documents against Payment (D/P) or gets your acceptance under Documents against Acceptance (D/A).

Benefits
Easier process: Easier and cheaper to operate than Letter of Credit.
Less funds tied up: No advance payment is required when the exporter arranges shipments; documents are released and goods may be taken immediately against your payment. In particular, nearly no funds are tied up with D/A as you may make payment after the goods are sold and money returns. 
Quality/Maintenance Guarantee
CMB issues a written undertaking to the buyer of your product or the owner of a project completed by you, guaranteeing that you will fulfill your contractual obligations in the warranty or maintenance period. 

Benefits
Capability enhanced: CMB’s undertaking is a significant credit to help you win the negotiation and contract.
Financial efficiency increased: CMB’s undertaking eliminates the usual need for you to deposit some money with the buyer/owner, thus increasing your financial efficiency.
Completion of contract: CMB’s undertaking ensures the buyer/owner that your product and/or project are in compliance with the terms and conditions agreed between you and the buyer/owner. 
Retention Money Guarantee
CMB issues a written undertaking to the buyer of your product or the owner of a project completed by you, guaranteeing that you will fulfill your contractual obligations if the buyer/owner releases the “retention money”.

Benefits
Capability enhanced: CMB’s undertaking is a significant credit to help you win the negotiation and contract.
Financial efficiency increased: CMB’s undertaking eliminates the usual need for the buyer/owner to retain some money with them to secure your contractual obligations in the final phase, thus increasing your financial efficiency.
Completion of contract: CMB’s undertaking ensures the buyer/owner that your contractual obligations of the product and/or the project are to be fulfilled by you even though no “retention money” is held by the buyer/owner.
Deferred Payment Guarantee
CMB issues a written undertaking to an exporter of goods, a provider of technology and labor service or a performer of engineering project (beneficiary), guaranteeing that your payment obligations will be fulfilled in a contract with deferred payment or usance payment terms. 

Benefits
Capability enhanced: CMB’s undertaking is a significant credit to help you win the negotiation and contract.
Financial efficiency increased: CMB’s undertaking facilitates you to reach an agreement with the beneficiary on more favorite payment terms, thus increasing your financial efficiency.
Shipping guarantee
CMB issues a written undertaking to a shipping company carrying the goods imported by you, guaranteeing that you can take possession of the goods without producing shipping documents, which arrive later than goods in the case of Letter of Credit (L/C).

Benefits
Capability enhanced: CMB’s undertaking is a significant credit to help you communicate with the shipping company.
Earlier delivery of goods: CMB’s undertaking allows you to take delivery of goods earlier than the arrival of shipping documents.
Financial efficiency increased: CMB’s undertaking eliminates the storage fees or demurrage charges possibly occurred to you, and offers you a chance to sell goods earlier, thus increasing your financial efficiency.
Note:
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.