Receive payment for your exports while covering your trading risks when you use our Import Letters of Credit.

You’re assured all goods sent to you by your trading partner arrive in good condition.

You’re able to negotiate a better price for goods you import.

  • Benefits

    • Provide you with valuable risk mitigation tools to assist with your international trade transactions.
    • Mitigate the risks of your supplier shipping incorrect or defective goods.
    • Import Letters of Credit are governed by International Chamber of Commerce rules which means responsibilities, liabilities are clearly defined and standardised worldwide.
    • We offer a comprehensive range of international trade services which allow you to strengthen relationships with your overseas suppliers.
    • Trade services products, such as Letters of Credit and collections, often act as 'gateways' to a whole range of other international products and services such as foreign exchange products and risk mitigation. Income benefits can be extensive.
    • As an importer you’re assured that if the terms of Letter of Credit are complied with, you’ll receive the correct goods on time.
  • How it works

    • Customers can specify the documents against which payment will be made.
    • Suppliers receive payment only if they present documents which comply exactly with the terms set out in the Letter of Credit.
    • While a Letter of Credit cannot guarantee the quality of the goods, it can call for an independent third party to inspect the goods prior to shipment and provide documentation detailing the inspection findings. This is an important advantage when buying from new suppliers.
    • We can offer guidance on the documents to ask for, and how to word the terms of a Letter of Credit.
    • Our Letters of Credit are always irrevocable – they cannot be amended or cancelled without the agreement of all the parties.
    • The bargaining position of customers is enhanced - customers may be able to negotiate longer credit periods when they provide Letters of Credit.
    • They may also be able to reduce their costs by using the benefits to the supplier as a lever in negotiations.
    • We can establish the Letter of Credit at sight.
    • Suppliers may also be persuaded to meet some or all of the cost of the Letter of Credit.
    • Gain status with suppliers because banks only issue Letters of Credit on behalf of customers they consider creditworthy.
    • Competitive position may also be enhanced; win deals from suppliers who insist on payment by Letter of Credit.
  • How to get it

Need more help?

Contact your nearest branch or your International Business Banking Specialist.

Email us at:

InternationalBankingservices@absa.co.za