Clean Collection

Clean Collection refers to a collection method in which the exporter entrusts a bank to collect payment from the importer solely on the basis of financial documents (such as bills of exchange, promissory notes, checks, etc.), without accompanying commercial documents (such as invoices, bills of lading, insurance policies, etc.). It is mainly used for the collection of small amounts such as non-trade settlements, balance payments, commissions, sample fees, and advance payments, or in scenarios where both parties trust each other and the goods have been sent directly. Unlike Documentary Collection, Clean Collection does not involve documents of title to goods, and the bank does not control the goods, so the risk is higher and the exporter must rely on the importer's credit. Precautions include: the bank bears no responsibility if the importer refuses to pay; the exporter should understand the importer's creditworthiness; Clean Collection is usually suitable for transactions with smaller amounts and long-term cooperative relationships. In addition, bank charges for Clean Collection are relatively low, but payment security is weaker.