Our Import Documentary Letter of Credit service enables you to receive payment for your exports while covering your trading risks.

Peace of mind

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

Ability to negotiate

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

What you need to know and how to get it

  • Our Import Documentary Letters of Credit provide you with valuable risk mitigation tools to assist with your international trade transactions.
  • By using an Import Documentary Letter of Credit, you can mitigate the risks of your supplier shipping incorrect or defective goods.
  • Import Documentary Letter 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 (enabling beneficiary to get paid upon presentation of complying documents), and refinance the importer for a further period (i.e. allowing him to pay for his imports at a future date and also to sell the goods before he has to pay). This improves our client’s cash flow situation, and also allows him to negotiate better pricing with the exporter
  • Suppliers may also be persuaded to meet some or all of the cost of the letter of credit
  • Customers can gain status with their suppliers because banks only issue letters of credit on behalf of customers they consider creditworthy
  • Customers' competitive position may also be enhanced; they may be able to 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