Short description
To reduce the risk of non-payment in a trade contract, the payment negotiations are handled by banks acting as agents for the importer and exporter. The Import Letter of Credit establishes a guarantee from the buyer's bank to the seller's bank. It guarantees payment, provided the seller complies with the terms and conditions within the Letter of Credit. An irrevocable letter of credit cannot be cancelled or varied without the consent of all parties.
Once you have set up the Letter of Credit, you can take advantage of our various funding facilities, which will provide the necessary funding for your goods. This allows you to offer payment terms to your customer, if required.
NOTE: Banks deal in documents only and product disputes must be dealt with directly between the buyer and seller.
This method is usually suited to medium - large value transactions.
This facility is:
- A contingency option to help establish good international trade relations
- Can be converted into a Import re-finance loan
Facility Establishment:
- Minimum facility amount A$250,000.00 fully secured.
- Full credit analysis and approval process takes approximately 10 working days
| Feature |
Description |
| Amount |
Minimum drawdown amount: $5,000
No maximum amount |
| Interest |
Principal and Interest is not applicable to this facility, as it is a contingent liability only. |
| Repayments |
Upon presentation of documents the full invoice amount is payable. |
| Term |
Minimum: At Sight
Maximum: 180 days from issue date but may be longer dependant on the commodity and at the Bank's sole discretion.
|
| Security |
A fully secured facility. Many forms of security may be accepted including cash and property. |
| Currency |
The letter of Credit is available in multiple currencies. |
| Fees |
|
Fees and charges vary for each transaction |
Please speak to a Trade Finance Specialist on +61 07 3362 1902 |
All trade finance facilities are available to approved applicants only and are subject to fees and charges. Terms and Conditions also apply. Risks are involved in utilising foreign currency products and independent legal and accounting advice should be sought in relation to the risks involved and the suitability of these products for your specific needs.
