An Outward Bill for Collection (OBC) is a trade service provided by the Bank (called the Remitting Bank) to send out customer’s sales/export shipping documents and collection instruction to the collecting bank in the buyer/importer’s country for presentation to the buyer (drawee) for payment.
An Inward Bill for Collection (IBC) is a trade service provided by the Bank, as a Collecting/Presenting Bank to handle and inform customer (buyer/drawee) incoming shipping documents from their supplier (drawer).
There are two types of Collections:
- D/P (Documents against Payment)
- D/A (Documents against Acceptance).