Export Letter of Credit

An Export Letter of Credit is a safe form of payment, with the opening bank guaranteeing payment if the terms agreed in the Letter of Credit are met. The product can be recommended if you are unsure of the buyer’s ability to pay, when trading with countries that have limited access to foreign exchange and for the sale of specialised equipment. An Export Letter of Credit can also be customised to provide the buyer with delivery credit without burdening the exporter's balance sheet.

Export documentary collection

Swedbank’s role regarding export documentary collection is limited to conveying the export documents to the buyer’s bank, which releases them to the buyer against payment or acceptance of payment. An export documentary collection is not a guarantee of payment. The security lies in the fact that the buyer does not have access to the goods before the documents are paid. Export documentary collection is governed by international regulations to which most banks adhere. It is also part of Swedbank’s commitment to send payment reminders in the event that payments are late.

Export financing

Export financing provides foreign companies, inside and outside of the OECD, with the opportunity to obtain long-term financing when purchasing capital-intensive goods. You get paid on delivery. Being able to offer financing can be a competitive advantage for exporters. This form of financing is common in areas such as the telecommunications sector and infrastructure. A thorough analysis is made of the political risk in the buyer’s country and of the buyer’s commercial risk. Risk coverage via EKN (the Swedish Export Credit Agency) limits these risks. Financing is documented to ensure each party’s responsibilities and rights.

Bank guarantee and Standby Letter of Credit

Bank guarantees can be used in a variety of situations, where the bank acts as guarantor for the fulfilment of contractual terms. It can be a competitive advantage to offer bank guarantees and in addition make advance payment possible. Swedbank provides guarantee templates for all purposes, and works with guarantees and Standby Letters of Credit issued under the regulations of the International Chamber of Commerce (ICC).

Import Letter of Credit

An Import Letter of Credit is a good option when you want to avoid paying suppliers in advance. With an Import Letter of Credit the bank guarantees your payment and you do not pay until shipping documents are presented to the bank. You can also negotiate for better payment terms since the bank guarantees your payment.

Import Documentary Collection

An import documentary collection means that you pay for goods when the shipping documents have arrived at the bank without having to provide collateral to the bank.

Bank guarantee/Standby Letter of Credit

A bank guarantee or a Standby Letter of Credit can provide extra security for your suppliers and facilitate longer supplier credit - thereby improving liquidity.