What is COLLECTION?

1. In General, this is a process for recovering delinquent amounts owed to a firm by a customer. 2. In Banking: this is the (1). presenting a check or draft as payment, then as a receipt of its amount in cash or as a credit to the account; (2). moving of delinquent or pastdue accounts for full or partial recovery of the amount to a collection agency or a special department set up for collections purpose. 3. In Foreign trade, this is a procedure for a global banking system acting on behalf of an exporter or seller, to collect payment as cash or as a time draft from the importer or buyer. In return, the bank receives documents necessary to take delivery of the items ordered.

More On This Topic



Link to This Definition
Did you find this definition of COLLECTION helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary