Usein kysyttyjä kysymyksiä

Yes this is possible, but all amendments have to be approved by the applicant and issuing bank. When an LC has expired it means that the issuing bank has no more liability towards the exporter, and if the beneficiary ships goods he does it at his own risk and peril. If the exporter requires the LC to be extended or amended, he must contact the applicant which in turn must apply for an amendment at the bank (issuing bank).

Yes you do. The banks deal with documents not goods (UCP 600 article 5) and will not physically confirm the content of a shipment.

No, however many exporters will be reluctant to ship the goods under an expired LC and will require the buyer to request an extension.

A letter of credit that is payable once it is presented along with the necessary and correct documents.

It is a method which means that a first beneficiary (often a middleman) transfers his rights to a second beneficiary (normally the producer or ultimate seller). According ICC rules, article 38(b), an LC can only be transferred if the issuing bank expressly designates it as transferable. Only the nominated bank or a bank authorized by the issuing bank may transfer the DC.

In order to receive payment, the exporter must present the documents stipulated in the letter of credit. There are no requirements for specific documents to be presented in an LC. The list and form is open to negotiation by the seller and the buyer, and sometimes the LC contains requirements to present documents issued by a neutral third party evidencing, for example, the quality of the goods shipped or their place of origin. As a proof that goods have been shipped, the LC often requires some kind of transport document to be presented, for example a Bill of Lading or Air way bill. Please see our check list specifying the most common documents required under a -LINK: DC Presentation under an export documentary credits (DC).

Contact the seller and ask for the courier tracking number which enables you to track the documents. When the documents arrive at Nordea we will advise you.

Send the application to your local Nordea Branch.

The answer differs between collection and Letter of credit but we will contact you when the goods arrive to the airport and after we've been notified by the carrier. 

LC: If you want the goods we will release them which means that you are also obligated to pay when the documents arrive, even if they are determined to be discrepant.
Coll: Yes it is possible, but it has to be approved by your local branch. Please contact them.

Since we communicate though SWIFT, it is most important that the address in SWIFT is the correct one.

Yes this is possible, but all amendments have to be approved by the applicant and issuing bank. When an LC has expired it means that the issuing bank has no more liability towards the exporter, and if the beneficiary ships goods he does it at his own risk and peril. If the exporter requires the LC to be extended or amended he must contact the applicant who in turn must apply for an amendment at the bank (issuing bank).

It is a method which means that a first beneficiary (often a middleman) transfers his rights to a second beneficiary (normally the producer or ultimate seller). According to ICC rules, article 38(b), an LC can only be transferred if the issuing bank expressly designates it as transferable. Only the nominated bank or a bank authorized by the issuing bank may transfer the DC.

As per the agreed terms between buyer and seller, the period of credit is decided in the LC. Based on that period of credit, the time to effect payment by the opening bank (buyer's bank) is determined.

Yes, if you have presented correct documents and if Nordea has confirmed the LC you can be sure to receive payment at the time of maturity. If the LC is without confirmation you will receive funds when the foreign bank has effected payment.

It is the bank designated in the LC to reimburse the nominated bank. Thus it is the bank where the issuing bank maintains an account for the designated currency. The nominated bank will claim funds from the reimbursing bank after having accepted the documents.

If the documents are clean (without discrepancies), the exporter has the risk on the issuing bank. If the documents are discrepant, the seller has the risk on the buyer who has the option to waive the discrepancies or refuse documents.

The buyer might refuse to pay, and you may have to sell the goods to another buyer. If the goods, for example, are custom made it can be difficult to find a new buyer.

If the LC has expired and if the documents are discrepant and not accepted by the applicant.

If the LC does not state the amount of insurance, the insurance document must cover at least 110% of the invoice amount (CIF/CIP value).

The idea with the Documentary Collection is that the goods remain in your control until the buyer has paid and received the documents. To achieve this, remember to put the collecting bank (buyer's bank) as consignee of the goods in the transport documents.

An Aval is a joint commitment by the principal debtor and a third party (normally a financial institution) to make payment of an obligation in favour of the beneficiary. The third party commits itself for the full credit amount in the event that the principal debtor does not fulfill his obligation by the due date.

Transhipment is the act of taking cargo from one kind of transport to another during the goods transportation route. Partial shipment is when you split up an order into several deliveries.

All your incoming and outgoing trade finance transactions will remain in Trade Finance Global for 10 years or until you decide to purge them. This gives your company an excellent tool for auditing and reporting, without having to depend on paper files. Trade Finance Global is available 24/7.

To create a template: Open a DC or Guarantee application or collection instruction. Fill out all the data that normally remains the same, e.g. names and addresses, etc. Click the "Template" button at the end of the page and give the template a suitable name. 

To use a template: Click the "T" that will appear to the right of e.g. "Documentary Credit."

After having completed the DC application, press the Export button at the bottom of the work page. Then you will be able to see a draft of the DC issuance [SWIFT MT700].

To remove one item: Click the Delete Icon. 

To remove several items: Click the “Bulk Operation” button found at the bottom of the incoming correspondence tab. Click "search" to see all items in your Inbox or specify your criteria and the click "search". Now you get a list of all items in your Inbox. Mark the ones to be removed and then click the “Save” button at the end of the list. The "removed" items can always be found under Deal History.

You will find all kinds of help in the user guides at nordea.com.

The reason for this can very often be that you are making a deal where the amount is higher than you are authorised for. To enable you to do this, it requires the supervisor to make some corrections to your profile by choosing "signature levels." Then "edit" the relative product, raise the amount and save.

No, you will be informed by e-mail notification every time we send something to your inbox, provided that you have ticked these boxes in your customize settings.

Yes, there is an Excel option under “Inquiry.” Trade Finance Global’s report centre also enables you to create reports in other file formats.

You can still find the case under Deal History found in the Inquiry Menu.

Choose "Transaction Status." Then click Search and you will get a chronology of all your transactions.

Whilst creating a transaction using an existing template, click the "Update Template" button at the bottom of the work page. You are also able to edit templates by entering the "Templates Register" available in the "Customize" menu.

In case of disagreement between the parties regarding the underlying conditions, payment under an accessory guarantee may be postponed pending amicable agreement, arbitration or final judgement in court. When the beneficiary demands payment in accordance with the terms of a demand guarantee, the bank is obliged to effect payment whether or not the principal is in default under the underlying contract. Any disputes between the principal and the beneficiary must be solved between the parties subsequently without the bank's role. The bank's obligation to pay under the guarantee is based solely on the guarantee itself and is not dependent on the underlying contract.

The Uniform Rules for Demand Guarantees, developed by the ICC are used by banks and businesses across continents and industry sectors. A demand guarantee is an independent undertaking where guarantors are assured that their commitment is subject to its own terms.

A bank guarantee request has to be approved by the bank. Normally you get an offer letter for a specific guarantee or you will get an offer letter for a guarantee facility up to a certain limit. As a customer you must provide us with at least the following information: Name and address of debtor/principal, Name and address of beneficiary, Guarantee amount, Expiry date, What the guarantee is related to (e.g. the underlying contract) and Type of guarantee (e.g. performance, payment or advance payment).

The pricing of a guarantee depends on: The amount and length of the guarantee, the type of guarantee, what kind of security the bank receives, the general market situation and the specific situation for your line of business.

A demand is brought against the guarantor when the beneficiary believes the principal has defaulted with the underlying conditions covered by the guarantee. The demand must state: a reference to the guarantee in question, how the principal has defaulted on the underlying agreement covered by the stated guarantee, and if possible documentation: the amount demanded under the guarantee and to which account the money should be credited.

Payment will depend on if the guarantee is an accessory or demand guarantee. A demand under an accessory guarantee will be paid when one of the following conditions is true: amicable agreement (e.g. the principal accepts the demand), final judgement in court or arbitration award. Payment under a demand guarantee will depend on the wording of the guarantee, describing what must be presented and when payment should be made.

If the guarantee is open ended (i.e. no expiry date), we need either the original guarantee document returned to us or that the beneficiary in writing states that Nordea is released from our obligations.