Letters of credit are frequently used when buying and selling goods across national borders. Our sound product knowledge and international experience means that we can help you with your international trade transactions.

What are letters of credit?

In short, a letter of credit is a payment confirmation from the buyer's bank to the seller, guaranteeing that payment will take place after the seller has presented the documents described in the letter of credit in accordance with the deadlines/requirements stated.

In addition, letters of credit are an excellent financing product where we can offer good prices based on risk and duration.

How do letters of credit work?

The buyer's bank promises to pay the seller for the invoiced goods after the seller has fulfilled the terms listed in the letter of credit. This is done by presenting all documents specified in the letter of credit before the agreed deadline.  

Letters of credit are recognised worldwide and are subject to international rules regulated by the International Chamber of Commerce (ICC).

Letters of credit are used when:

  • The buyer and seller do not know each other
  • The seller does not feel comfortable with or does not rely on the purchaser's ability to pay
  • There is political or commercial risk
  • There are large cultural differences between the buyer and the seller
  • There are large geographic distances between the parties
  • The buyer and seller need financial assistance

Letters of credit are a very flexible instrument and can be used in all sectors for anything from goods shipments to the start-up of large manufacturing plants.

See our prices:
Import Letters of credit | Export Letters of credit

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Customer service on
+47 95091708

You may also call our Corporate Customer Service on (+47 915) 04800.

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