Export documentary credit

Documentary credit is the most suitable method of payment when

  • the trading relation is new
  • the trading partners are far away from each other geographically
  • the economic and political conditions in the buyer's country are unstable or the country's legislation or regulations require the use of documentary credit
  • the delivery concerns a project
  • you need financing for the period of payment

The documentary credit is a payment undertaking given by the buyer's bank in your favour. You receive payment when you have presented documents conforming to the terms of the documentary credit. By using a documentary credit you remove the credit risk related to the buyer. When the documentary credit is confirmed by Nordea, the uncertainty concerning the buyer's country and bank is also removed.

You can finance the payment period of a confirmed documentary credit without burdening your company's collateral.

A documentary credit can be tailored to suit each specific trade.

If you want, you can contact the Trade Finance unit for advice before negotiating with your trading partner.