What does advance against collection mean?

advance against collection meaning in Law Dictionary

bank loan that's short term directed at an exporter or vendor. It really is paid once the customer covers the cargo. The lender may take their funds away at that point. If this does not occur the vendor is accountable to pay.

advance against collection meaning in Business Dictionary

Short term bank-loan higher level to a seller/exporter against his / her time-draft accepted by a buyer/importer. The loan amount is subtracted because of the lender whenever payment is obtained from the buyer/importer, otherwise its restored through the seller/exporter.