Clean Collection

CLEAN COLLECTION

TEAM

Member Content seekers Vũ Ngọc Minh Anh

Member Presenter Bùi Hà Minh Kiên

PP Creator Trương Duy Bảo

Member Content seekers Trương Mỹ Hân

1. Definition

2. Clean collection procedure

3. Strengths and drawbacks of Clean Collection

4. Cases to apply

Definition

01

Clean collection is a method in which the exporter after supplying goods/services to the importer, delegates his bank to collect money basing on the bill of exchange not accompanied by commecrcial documents which are directly sent for the importer to obtain goods.

1. Definition

2. Clean collection procedure

3. Strengths and drawbacks of Clean Collection

4. Cases to apply

2. Clean collection procedure

The process of clean collection

1. Definition

2. Clean collection procedure

3. Strengths and drawbacks of Clean Collection

4. Cases to apply

3.Strengths and drawbacks of Clean Collection

Drawbacks

Strengths

-The exporter’s interests are not gruaranteed -The payment speed is slow -Functions of the bank are not fully use

- Simple - Taking the delivery does not involve the payment -> Benefit for the importer

Legal benefits and risks for importers

Legal benefits and risks for exporters

Benefit _No. Risk _Clean collection method does not guarantee the interests of the exporter because the receipt of goods and the payment are not binding, so the risk is mainly on the exporter. The buyer can receive the goods without paying or delay in payment. The bank only acts as an intermediary to collect money or not, the bank also collects fees, the bank is not responsible if the importer does not pay.

Benefit _In the clean collection method in general, the importer has many advantages legal interest in payment rights over exporters. Salient features of is a payment that depends on financial ability and goodwill pay the importer. Therefore, in this payment method, the importer has many advantages over the exporter, whether the payment is fast or slow or not to pay depends a lot on the importer. Risk _In the method of clean collection, risks may arise when the bill of exchange comes first and the importer is obliged to pay payment or acceptance while the goods have not been dispatched, or have been sent gone but not arrived, or when receiving the goods may not be correct quality.

1. Definition

2. Clean collection procedure

3. Strengths and drawbacks of Clean Collection

4. Cases to apply

4. Cases to apply

Listening

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