The Parties in the Collection of Drafts


The drawer is the party who issues the draft and to whom the payment is made. The drawer is the seller (the exporter) and the payee of the draft. The payee could be another party rather than the exporter, or could be the bona fide holder (the bearer) of the draft.


The drawee is the party who owes the money or agrees to make the payment and to whom the draft is addressed (made out). The drawee is the buyer (the importer), the acceptor and the payer of the draft in a documentary collection. In a letter of credit the drawee most often is the confirming bank or the issuing bank, which is the acceptor and the payer of the draft.

Remitting Bank

The exporter's bank to whom the exporter sends the draft, shipping documents and documentary collection instructions, and who subsequently relays them to the collecting bank in a documentary collection is called the remitting bank.

The term remitting bank as used under a letter of credit may refer to a nominated bank from whom the issuing bank or the confirming bank, if any, receives the shipping documents.

Collecting Bank (Presenting Bank)

The bank in the importer's country (the importer's bank usually) involved in processing the collection---presents the draft to the importer for payment or acceptance, and thereafter releases the shipping documents to the importer in accordance with the instructions of the exporter---is called the collecting bank or the presenting bank.