Our Export Documentary Letter of Credit covers your trade risk by giving you a guarantee that we’ll pay you once you’ve provided us with all the required trading documents with your buyer.

Helps manage cash flow

You can secure a known payment date, currency and amount which will assist you manage your cash flow

Payment is guaranteed

You get a guarantee of payment before you commit to sending goods

What you need to know and how to get it

Benefits

Our Export Documentary Letter of Credit offers you:

  • a comprehensive range of international trade services to support your overseas trading
  • 'gateways' to a whole range of other international products and services such as foreign exchange products and risk mitigation
  • you can secure a specific payment date
     
How it works
  • Payment is only made to exporters when they present documents that comply exactly with the terms and conditions of the Documentary Letter of Credit
  • The exporter may be able to discount deferred Letter of Credit, thus receiving their payment immediately upon presentation of complying documents
  • No impact on the exporter’s credit facility. Even if we discount the Letter of Credit, the risk will be on the issuing bank
  • Letters of Credit can be issued for any value and in any freely traded currency (subject to appropriate facilities having been marked for the customer)
    Sight or term payment options
  • Payment can be received immediately on presentation of compliant documents ('sight' payment) or on a fixed or determinable future date ('term' payment)

Need more help?

Contact your nearest branch or your International Business Banking Specialist

E-mail:

InternationalBankingservices@absa.co.za