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Manage the flow of goods with a letter of credit

An import letter of credit means that Nordea commits to paying the seller when the seller presents the letter of credit and other required documents, and the terms specified in the letter of credit are fulfilled. 

A letter of credit is an excellent method of payment when a foreign seller requires collateral before it starts manufacturing the goods you have agreed on.

Energise your exports

Use an export letter of credit when your customer is situated in an economically or politically unstable country, or if the legislation or other statutes of the customer’s country require a letter of credit. A letter of credit also offers the chance to finance the term of payment. 

Import letter of credit
Export letter of credit
Standby letter of credit
Documents and appendices
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Import letter of credit

As the buyer, you give Nordea instructions on issuing a letter of credit*. When Nordea issues a letter of credit, it undertakes to pay the seller provided that the terms and conditions of the letter of credit are fulfilled. The terms and conditions will be determined based on the trade agreement you have concluded with the seller.

You can use the Trade Finance Global service to send us an order for a letter of credit and to receive information on your import letters of credit.

*Issuing a letter of credit requires a credit decision.

Export letter of credit

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

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

Through the Trade Finance Global service, you will receive notifications of incoming letters of credit issued in favour of your company.

Benefits for your company

  • You can be certain that you will receive payment after delivery.
  • You can obtain financing for your term receivables under certain conditions.
  • In an unconfirmed export letter of credit, the buyer's bank undertakes to pay the receivable when the documents stated in the terms and conditions of the letter of credit are presented. This means that the risk related to the buyer is eliminated.
  • Eliminate the risk related to the buyer's bank and country with an export letter of credit confirmed by Nordea.
  • All letters of credit are issued following the international documentary credit rules (UPC 600).

Read more about our products and view their brochures at nordea.com.

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