If you are an exporter, your customer can arrange for a documentary letter of credit in your favour, with instructions to advise to Bank of Queensland. Depending on who issues the letter of credit and nature of the goods, Bank of Queensland may then be able to advance funds as pre-shipment finance against that letter of credit. You simply prepare your documents under the letter of credit and present them to Bank of Queensland who will arrange payment in terms of the letter of credit.
More information about these arrangements can be found in the section about trade finance.
Features and benefits
- exporter will receive payment for their shipment of goods (provided they meet the conditions of the letter of credit)
- can be used as a financing tool for exporters
- provides security for both importers and exporters as banks must adhere to the International Chamber of Commerce uniform rules for Letters of Credit (UCP 600).