Document Collections -- Documents Against Payment

Stipulate that the exporter ships goods to the importer without a letter of
credit or another form of guaranteed payment. The importer must sign a
sight draft before receiving the necessary documents to pick up the goods.
Documents Against Acceptance (D/A) are instructions given by a shipper to a
bank stating that the documents transferring title to goods should be
delivered to the buyer only upon the signing of a time draft. In this
manner an exporter extends credit to the importer and agrees to accept
payment at a readily determined future date.