Which type of draft requires prior knowledge from the forwarder for proper payment collection?

The correct answer, documentary draft, refers to a payment method that relies heavily on the presentation of specific documents associated with the goods being exported. In this context, the forwarder plays a crucial role because the payment collection process is tied to the documentation required for shipping and delivery. When using a documentary draft, the forwarder needs to understand the exact requirements—including which documents must be presented and under what conditions payment will be made—before initiating the transaction. This ensures that the buyer is only able to obtain the shipping documents once the payment obligation is satisfactorily fulfilled.

In contrast, a standard draft is more straightforward and does not necessarily depend on documentation. A cash draft entails immediate payment, which removes the necessity for documents related to the shipment. Finally, a foreign draft refers to drafts that are drawn in a different currency or country but similarly does not require prior knowledge from the forwarder regarding documentation for payment collection. Thus, understanding the role of documentation in the payment collection of a documentary draft highlights why it is the correct answer.