Export documentary credit

Energise your exports

An excellent method of payment as it helps your company to hedge against the risks related to export trading. The buyer's bank issues an irrevocable payment undertaking to your company provided that your company presents to the bank documents conforming to the terms and conditions of the documentary credit during its validity.

The repatriation of sales receivables involves risks. Even if the buyer usually settles its payment liabilities without cause for complaint, unstable political and economic circumstances may affect the buyer's liquidity and ability to pay. The use of a documentary credit diminishes the risks related to a foreign buyer. It can also be used to finance the term of payment.

We also recommend the use of a documentary credit when the trade relationship is new or the value of the trade is significant to the buyer or your company. The same goes for the manufacture of special goods made to order or a project delivery where the payment is made as deliveries are made or as the work progresses.

Through Trade Finance Global you will, among other things, be electronically advised of a documentary credit.