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Standby documentary credit

A standby documentary credit is a demand-type collateral given in the form of a documentary credit. Nordea can issue a standby documentary credit on behalf of your company in favour of your trading partner, or your company can have it in its favour.

Security to foreign trading

Offer your trading partner a standby documentary credit issued by Nordea to secure the fulfilment of your company's obligations under the agreement. This way your trading partner knows that you are a reliable cooperation partner.

Your company can also request a standby documentary credit from the trading partner so that you can be sure that your partner will act as provided by the agreement. Collateral issued by the bank provides security to your company especially when the trading partner is not well known.
Use standby documentary credits for managing your company's foreign trade risks.

Useful tips

By offering a standby documentary credit to your trading partner as collateral for payment:

  • You may not have to pay an advance payment.
  • It may be easier for you to get a term of payment.

You can request for a standby documentary credit issued in favour of your company if you are engaged in long-term trading, for example. Then you do not need to re-negotiate the terms and conditions for each shipment.  

Application

You can fill in an application for a standby documentary credit and print it out via the link on the right. Remember to read also the general terms and conditions. The form must be filled in completely including a description of the goods. A standby documentary credit always has a due date.

A standby documentary credit always requires a credit decision so you should send the application to your home branch.  

Application for a standby documentary credit (pdf, 1 MB)

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