Letter of Credit
Suitable for buying and selling products across national borders.
Security for international trade
Financing of products en route
Guarantee of payment
What is a Letter of Credit?
A Letter of Credit is a conditional payment confirmation. The buyer’s bank promises to pay the invoiced amount to the seller’s bank, according to the rules described in the Letter of Credit.
Advantages for the buyer
- the products are sent before the seller receives payment;
- easier control of the date of the product’s arrival;
- easier access to credit or a price reduction;
- the bank will wholly or partly be able to finance the products;
- The entity providing the Letter of Credit for a product delivery often takes precedence when there is a shortage of stock
Advantages for the seller
- Security that the payment will be made
- Financing of the product while it’s en route
- Can disregard the buyer’s financial position.
The order cannot be cancelled without consent - Guaranteed by the bank that payment will be made on the agreed date
Forms and templates
Import Letter of Credit
- Application form for import Letter of Credit (PDF, Norwegian)
- Amendment form for import Letter of Credit (PDF, Norwegian)
Export Letter of Credit
- Request to transfer Letter of Credit (PDF, Norwegian)
- Accompanying letter for export Letter of Credit (PDF, Norwegian)
- Checklist for new Letter of Credit deals (PDF, Norwegian)
- Draft/Bill of exchange (PDF, Norwegian)
- Template for filling out Draft/Bill of exchange (PDF, Norwegian)
- Check upon receipt of Letter of Credit and issue of documents (PDF, Norwegian)
- Incoterms 2010 (PDF, Norwegian)
- The Letter of Credit’s current sequence number (PDF, Norwegian)
Would you like to order a Letter of Credit?
An application for a Letter of Credit undergoes the same credit assessment as an application for credit or a loan.
We are available from Monday to Friday between 8.00 a.m. and 4.00 p.m. Call us on 950 91708. If you have a client manager at DNB you can contact them directly.