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The world’s most secure payment form
Letters of credit are the most secure pay-
ment form when you export to economically and politically unstable countries. They provide security to buyers as well as sellers.
A letter of credit is a good way of dealing with an unfamiliar counterparty. |
Export letters of credit - an overview
A letter of credit is an irrevocable commitment from an opening bank, that is the importer’s bank, to pay against correct documents. The buyer’s bank assumes responsibility for payment, provided that the conditions of the letter of credit are met.
Export letters of credit at Handelsbanken
We have well-established trade finance operations, and local presence in many regions of the world. With our help you will be able to find the letter of credit solution that best suits your business.
Export letters of credit - important points
The design of the letter of credit can vary according to its function and the risk counterparty. For example, payment can take place when correct documents are presented, or after an agreed credit period. The exporter’s bank can also include its confirmation in a letter of credit, whereby the risk is shifted from the importer’s bank to the exporter’s bank.
Read more about export letter of credits
Advantages
- Secure means of payment
- The seller can begin manufacturing
- The buyer is sure that delivery will be at the right time
- The bank guarantees the purchaser’s payment capacity
- Possibility of variations is large
- Standard International Chamber of Commerce regulations
- The letter of credit can also be used as collateral in financing
You are welcome to contact your local branch office or one of our Trade Finance departments in Stockholm, Gothenburg or Malmö, so that we can tell you more about what we can do for your company.
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