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.
Black’s Law Online Dictionary
