Manage the flow of goods with the terms and conditions of the documentary credit:
- You can easily get a longer term of payment by offering an import documentary credit as the method of payment.
- As the buyer you can make sure that the goods have been shipped before you have to pay.
- The ICC Uniform Customs and Practice for Documentary Credits adds security to your trading.
A documentary credit is an excellent method of payment when a foreign seller requires collateral before manufacturing begins or needs financing for the production. In some countries the seller can pledge the documentary credit to acquire raw material.
As the buyer you give Nordea instructions on opening a documentary credit. When Nordea opens a documentary credit, we undertake to pay the seller, provided that the terms and conditions of the documentary credit are fulfilled. The terms and conditions will be determined on the basis of the trade agreement you have concluded with the seller.
Via Trade Finance Net Services you can send Nordea documentary credit instructions electronically and receive information on your import documentary credits.
Since an Import Documentary Credit is a credit service it will require the credit approval of Nordea. If your company (as a buyer) wants to open a Documentary Credit you need to send in an application to your home Nordea branch. The form must be filled in completely including a description of the goods. The application form can be found in the right column.
You can also apply for an import documentary credit electronically via Nordea's Trade Finance Global