Letter of Credit Issuance By DBS Bank

Provide assurance to your suppliers when the 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 of Issuance work?

 

 

  1. The buyer and seller enter into a contract and agree that payment be made on the basis of Letter of Credit
  2. Buyer approaches DBS (issuing bank) to issue Letter of Credit in favour of the seller
  3. DBS issues Letter of Credit which is advised through its branch or correspondent bank (advising bank) in the seller’s country
  4. Advising bank advises Letter of Credit to the seller
  5. Upon receipt of the Letter of Credit, the seller prepares shipment and delivers documents to presenting bank
  6. Presenting bank despatches documents to DBS for payment
    1. DBS pays the presenting bank upon verifying the documents are in order
    2. Upon receipt of payment, presenting bank pays the seller
  7. Buyer pays the document amount to DBS
  8. DBS forwards the documents to the buyer, who can now use them to obtain the goods

 

Why choose DBS Letter of Credit Issuance?

  • Grow your business with the Best Trade Finance Bank in India and the bank that was named the Rising Star for the Transaction Bank category, both awarded by The Asset in 2013
  • 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 documents are processed on the same day. We offer one of the latest cut off times in India for your convenience

Product Details

  • Features
  • Pricing

 The common types of letter of credit are:

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 accept the draft once all documentation received is in order and agree to pay on the maturity date

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

Standby Letter of Credit

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

 

 

FAQs Of Letter of Credit Issuance By DBS Bank

 

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 visit us at any of our Branches should you require a credit facility.

 

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 correspondent 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 any of our Branches. Alternatively, you can apply via IDEAL™.

    About

    Today Asian economies are shaping global growth, giving rise to many new opportunities to grow your wealth. As a bank that’s born and bred here, we have what it takes to ensure that you are always in the know. Enabling you to arrive at more informed decisions that make it easier for you to harness the potential of Asia

    • At DBS Bank, we understand Asia, its markets and its people. Providing you with fresh thinking and an abundance of experience. Whether it’s through our tailored solutions or timely insights and expert advice
    • With unmatched local knowledge and research, an Asia-focused, 15-country network, and enduring relationships with customers across borders, we help you achieve your financial goals through a variety of investment options.

    Access. Advantage. All over Asia.

    • And stay abreast of market developments with our daily in-depth analyses and reports, brought to by our multiple award-winning DBS Group Research and Chief Investment Office teams.

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