Request-for-Debit (also known as Collection Based on a Letter of Authorization) is a direct debit instruction that allows customers you to initiate prompt collection of receivables from your business partners via the Giro system based on a bilateral agreement. The Bank processes the incoming payments received in response to the your collection requests of the customers and our electronic banking system, CitiDirect allows customers to automatically initiate Requests-for-Debit and ensures reconciliation features.
The prerequisite for the initiation of a Request-for-Debit is to agree with your customers, the remitter, that they sign off the authorization for collection and register it with their account holder bank. Your customer is entitled to set in the authorization letter an upper limit of the amount to be collected and the eventual queuing period of the Requests-for-Debit.
Partial payments are also possible, thus in case your partner's account cannot cover the whole amount which should be collected, your partners' bank fulfils partial payments as far as the account balance allows it;
Fully automated reconciliation of your accounts receivables. In addition to the account statement and account statement file, where the payment for Request for Debits are reported, Citibank generates structured electronic reports on transactions initiated, the incoming payments that were reconciled against to the original request, the rejected transactions and transactions that were closed due to non-response;
With enhanced control over your cash flow, you can reduce your borrowing costs, maximise returns on surplus balances and make strategic liquidity management decisions;
Enhanced control over your accounts receivable allows you to quickly identify those customers who paid their outstanding invoices on time. This enables you to release their credit lines faster, thereby increasing your sales potential.
Only via CitiDirect electronic banking system
Fully automated reconciliation of your accounts receivables. In addition to the account statement and account statement file, where the payments for Group Collection are reported, Citibank generates structured electronic reports on transactions initiated, the incoming payments that were reconciled against to the original request, the rejected transactions and transactions that were closed due to non-response;