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.
How Does A Letter of Credit Work?
Why choose DBS Letter of Credit Issuance?
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
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
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
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.
You may call us at 2290 8068 for enquiry.
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.
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™.