27 June 2014
under bills for collection, the exporter gives the bill to a financial institution (generally) to present the bill and collect the proceeds on his/her/its behalf.
for eg, you export goods to USA. To maintain the ease of transaction, you give the bill to your banker to present the bill to your client and collect proceeds for the same. The bank would charge you for its services. the benefit you get is that cost charged by bank would still be cheaper than going for collection on your own.
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