Import Services

Letter of Credit Issuance

Provide assurance to your suppliers when complying documents are presented

Build relationships with clients and support new business opportunities with a DBS Letter of Credit. We issue a Letter of Credit at your request, assuring payment up to a stated amount within a prescribed time. We then check that the documents received are in compliance with the Letter of Credit terms and certify them before you make payment.

 

Why choose DBS Letters of Credit Issuance?

  • Grow your business with the Best Trade Finance Bank in Singapore, as named by Alpha Southeast Asia and The Asia Banker in 2012. We also received this accolade from Global Finance in 2012, for the 8th consecutive year
  • Leverage our "AA-" and "Aa1" credit ratings to provide your sellers with assurances of payment through our Letters of Credit
  • Enlist the help of our specialists, who offer advice and expertise
  • Save time and ensure faster delivery by applying for a Letter of Credit online through IDEAL™ , our online banking platform
  • Ensure payments are made only when the necessary documentation is received and has been checked by our experienced, certified documentary checker
  • Submit forms any time before 6pm on a working day to ensure your transactions are processed on the same day. We offer one of the latest cut off times in Hong Kong  for your convenience

Product Details

    Common types of Letter of Credit:

    Sight Letter of Credit

    The issuing bank will honour the payment at “sight”, which means the payment will be made once the documentation received is in order

    Usance Letter of Credit

    The Issuing bank will confirm the maturity date once all documentation received is in order and agree to pay at maturity

    Red Clause Letter of Credit

    This allows the issuing bank to make partial advance payment to the seller upon receipt of the documentation. This is commonly used in the manufacturing industries

    Transferable Letter of Credit

    This is usually used by middleman traders who do not enjoy a credit facility. DBS will transfer the Export Letter of Credit in favour of the ultimate seller at the request of the middleman, who will then sell the goods under the Export Letter of Credit

    Back-to-Back Letter of Credit

    This is used by middleman traders with a credit facility. The master Export Letter of Credit from the buyer’s bank backs the issuance of an Import Letter of Credit. Proceeds from the master Export Letter of Credit are then used to pay the bank under the Import Letter of Credit

    Standby Letter of Credit

    This is typically used to assure the applicant will meet the payment obligations or contractual performances specified. Another commonly used product in this situation is a Banker’s Guarantee

FAQs

Can you issue a Letter of Credit to my seller if I do not have a DBS credit facility?

No, you must obtain a credit facility with DBS before we can issue a Letter of Credit to your sellers. Please call us at 2290 8068 should you require assistance.

How do I complete the Letter of Credit application form?

You may call us at 2290 8068 for enquiry.

Can DBS issue a Letter of Credit if the seller doesn’t provide the advising bank’s information?

Yes. We issue the Letter of Credit and advise through our network branch or agent bank in the event that we do not have a branch or office in the seller’s country.

Awards

Awards we have won recently
Best Trade Finance Bank in Singapore

Best Trade Finance Bank in Singapore

2012
Best Trade Finance Bank in Singapore

Best Trade Finance Bank in Singapore

2012
Best Trade Finance Bank in Singapore

Best Trade Finance Bank in Singapore

2013
View All

 

How do I apply?

Simply submit your letter of credit application form at one of our Trade Collection Branches or Enterprise Banking Centres. Alternatively, you can apply via IDEAL™.

Get in Touch

DBS BusinessCare: 2290 8068

Get in Touch

DBS BusinessCare: 2290 8068