Security in foreign trading
Offer your trading partner a standby documentary credit issued by Nordea to secure the fulfilment of your company's obligations under the agreement. This way your trading partner knows that you are a reliable cooperation partner.
Your company can also request a standby documentary credit from the trading partner so that you can be sure that your partner will act as provided by the agreement. Collateral issued by the bank provides security to your company especially when the trading partner is not well known.
Use standby documentary credits for managing your company's foreign trade risks.
By offering a standby documentary credit to your trading partner as collateral for payment:
- You may not have to pay an advance payment.
- It may be easier for you to get a term of payment.
You can request for a standby documentary credit issued in favour of your company if you, for example, are engaged in long-term trading. Then you do not need to re-negotiate the terms and conditions for each shipment.
Your benefits with Standby Letter of Credit
- you avoid or secure advance payment
- you can obtain credit
- you secure compensation for non-fulfilment of important obligations
- the banks involved will act according to the internationally accepted rules of the International Chamber of Commerce *) Issuance requires the credit approval of Nordea