Letters of Credit

Letters of credit suits well for companies active in trading with politically unstable and economically weak countries. If you import, a Letters of Credit could minimize the risk of wrong deliveries since the bank only pay if the seller could show the documents you and the seller have agreed upon in the contract. If you export, the Letters of Credit will secure the payment from the buyer. If the exporter is not prepared to assume the risk on the buyer's bank, the exporter could ask its bank for confirmation of the Letters of Credit.

With a correct structure, the Letters of credit will offer you financing possibilities. An importer could be offered deferred payment but the exporter could receive funds upon delivery through discounting.

SEB can help you with the confirmation, discounting and pre-checking of documents.