|More facts||Prices||Sign up|
A Documentary Credit is a common method for settling international trade
Based on your agreement with the supplier to effect payment under a Documentary Credit, you send an application to Nordea for the issuance of a Documentary Credit.
Nordea issues* the Documentary Credit in favour of the supplier and sends it to the supplier's bank. The supplier ships the goods and presents the documents (invoice and transport documents etc.), in accordance with the terms of the Documentary Credit to his bank.
The documents are then forwarded to Nordea which effects payment or provides acceptance of future payment to the supplier's bank and sends the documents to you.
Abbreviations used in connection with Documentary Credits: DC, L/C.
Your benefits with Documentary Credits
- you avoid advance payment
- you can obtain credit
- you can gain control of the delivery
- the banks involved will act according to the internationally accepted rules of the International Chamber of Commerce.
*) Issuance requires credit approval of Nordea.