Home > Our services > International products and services > Trade Finance > Export > Documentary Credits
Documentary Credits
| More facts | Prices | Sign up |
A Documentary Credits is a common method for settling international trade
First you agree with the buyer that the payment is to be made under a Documentary Credit. The buyer then sends an application for a Documentary Credit to his bank, which will issue the Documentary Credit in favour of you and send it to Nordea. We will advise you upon receipt of the Documentary Credit.
You then ship the goods and present the documents (invoice and transport documents etc.), in accordance with the terms of the Documentary Credit, to Nordea. We forward the documents to the buyer's bank, which effects payment or provide acceptance of future payment.
Abbreviations used in connection with Documentary Credits: DC, L/C.
Your benefits with Documentary Credit
- payment is guaranteed by the issuing bank
- Nordea can guarantee the obligation of the issuing bank (confirmation)
- you can offer credit and/or obtain financing
- the banks involved will act according to the internationally accepted rules of the International Chamber of Commerce.
