- Solutions
- Trade Financing Services
- Letter of Credit Issuance
Letter of Credit Issuance
Guarantee payment to your suppliers
- Solutions
- Trade Financing Services
- Letter of Credit Issuance
Letter of Credit Issuance
Guarantee payment to your suppliers
A Letter of Credit (LC) is issued at your request to assure payment to your supplier up to a stated amount, within a prescribed time.
![relationships](/documents/1038672/135406693/028.png/00a52966-db35-32a7-dea8-260d125d42b2?t=1576047761325)
Stronger ties
Build stronger relationships and support new business opportunities
![documents](/documents/1038672/154564261/006.png/10026325-0a15-936f-a78f-24fd20455260?t=1576045648287)
On your terms
Ensure the necessary documents are received for goods clearance
![payment](/documents/1038672/160184203/004.png/458fa2c3-d878-6a98-bb49-23326790e6a9?t=1576046458851)
Secure
Documents are checked for compliance and terms before you make payment
![expertise](/documents/1038672/135406693/003.png/3214cac9-3708-0a76-e15c-95be647ef916?t=1576047752831)
Help when you need it
Our experts can offer you advice and expertise
![assurances](/documents/1038672/156274705/081.png/f6847088-f6d7-0794-118f-950c31cbd0ce?t=1576047875728)
Leverage our “AA-” and “Aa1” credit ratings
Provide your sellers with assurances of payment through our Letters of Credit
![delivery](/documents/1038672/154562737/005.png/00717add-a69b-4d4d-19f0-a9b9e43328b3?t=1576047280638)
Save time and ensure fast delivery
Apply for a Letter of Credit online via DBS IDEAL
Sight Letter of Credit | |
Issuing bank will honour payment at “sight”, meaning payment is made once documentation received is in order. |
Usance Letter of Credit | |
Issuing bank will accept the draft once all documentation received is in order and agree to pay on the due date. |
Red Clause Letter of Credit | |
Allows the issuing bank to make a partial advance payment to the seller upon receipt of documentation. |
- The buyer and seller enter into a contract and agree that payment be made on the basis of Letter of Credit
- Buyer approaches DBS (issuing bank) to issue Letter of Credit in favour of the seller
- DBS issues Letter of Credit which is advised through its branch or correspondent bank (advising bank) in the seller’s country/region
- Advising bank advises Letter of Credit to the seller
- Upon receipt of the Letter of Credit, the seller prepares shipment and delivers documents to presenting bank
- Presenting bank despatches documents to DBS for payment
- DBS pays the presenting bank upon verifying the documents are in order.
Upon receipt of payment, presenting bank pays the seller - Buyer pays the document amount to DBS
- DBS forwards the documents to the buyer, who can now use them to obtain the goods
![call](/documents/1038672/146650092/130.png/340a8de9-e24d-ae89-1ae0-caf9eef95f25?t=1576047143950)
Call
DBS BusinessCare
Tel: +852 2290 8068
Operating hours:
Mon to Fri – 9.00am to 6.00pm
Sat – 9.00am to 1.00pm
(excluding PH)