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Letters of credit
An internationally recognised payment method
How letters of credit work
How they benefit your business
Smooth import activity
- Use an internationally recognised payment method, in line with the International Chamber of Commerce (ICC) rules.
- Pay only after you receive the goods and based on the agreed-upon terms.
- Enhance your credibility and expand your international business relationships.
- Ensure better cash flow with import letter of credit discounting.
Secure export activity
- Lower the risk of non-payment from foreign buyers.
- Enhance your credibility and expand your international business relationships.
- Offer extended payment terms to foreign buyers and retain liquidity for your business with export letter of credit discounting.
Find out if you can have letters of credit issued
Apply provided you...
- Have an import or export business.
- Have a credit limit.
- Already bank with us.
- Have booked an appointment at a branch near you.
Have at hand...
The supporting documents to start banking with us or to update your details, if you:
- Are a freelancer / own a sole proprietorship.
- Own an SA, OE, PC, LTD or EE.
- Want to update your personal details.
Explore other options
Any questions?
Find the answers you need about letters of credit.
How much do export letters of credit cost?
You pay a fee:
- 0.10% for the notification – €20 minimum charge
- 0.25% for the confirmation per indivisible quarter – €35 minimum charge
- 0.40% for the execution or settlement – €35 minimum charge
- 0.20% for transfer to another beneficiary – €20 minimum charge
Moreover, you pay:
- €20 for cancellation or non-execution
- €15 for amendment
- €30 for reimbursement instructions
- €40 per document pre-checking
Have a look at the commissions and other charges.
How much do import letters of credit cost?
You pay a fee:
- 0.30% for the issuance – €40 minimum charge
- 0.20% for confirmation per indivisible quarter – €30 minimum charge
- 0.80% for guarantee or unsecured letter of credit – €45 minimum charge
- 0.45% for the execution or settlement – €40 minimum charge
- 0.30% for deferred payment undertaking – €20 minimum charge
You get 30% discount on issuance, confirmation and execution or settlement with a Smart Save sight account.
Moreover, you pay:
- €30 for amendment
- €30 for cancellation of non-executed letter of credit
Have a look at the commissions and other charges.
What is the transaction limit for simple imports and how can I change it?
You set the limit per transaction and it covers all payments to accounts for simple imports.
The maximum limit you can set is €50,000 per transaction.
To change the limit, log into business web banking and choose Profile > Security management > Transfer limits. Click on the pencil icon next to the “Limit for single import” and/or the “Daily transfer limit” and fill in an amount up to €50,000 to set the limit.
To increase the single import or daily transfer limit over €50,000 book an appointment at a branch.