Summary:
A Letter of Credit is a method of payment where the importer or buyer’s bank guarantees payment to the exporter or seller’s bank, provided the exporter complies with the agreed upon terms and conditions.
Types of letters of credit
| Import Letters of Credit |
- Suncorp guarantees payment on your behalf as the buyer, which gives the exporter reassurance that they will receive payment for the goods.
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| Export Letters of Credit |
- Suncorp assists the sale process by checking the workability of the letter of credit and highlights any potential issues. All Letters of Credit issued by Suncorp are irrevocable and cannot be cancelled or varied without the consent of all parties.
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Features
| Amount |
- Maximum: No maximum amount
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| Interest |
- Interest is not applicable as this is a contingent liability.
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Repayments (Imports)
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- Upon presentation of documents the full invoice amount is payable.
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| Repayments (Exports) |
- Payment is made upon receipt of funds from buyer.
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| Term |
- Minimum: 7 days
- Maximum: 180 days (may be longer at Suncorp Bank's sole discretion)
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Security (Imports)
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- Import Letters of Credit are fully secured with multiple forms of security accepted.
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| Security (Exports) |
- Export Letters of Credit are a transaction based facility. No security required.
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| Currency |
- Available in multiple currencies.
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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.
