- Trade
- Import Services
- LC or SKBDN Issuance
LC or SKBDN Issuance
Guarantee payment to your suppliers
- Trade
- Import Services
- LC or SKBDN Issuance
LC or SKBDN Issuance
Guarantee payment to your suppliers
Stronger ties
Build stronger relationships and support new business opportunities
On your terms
Ensure the necessary documents are received for goods clearance
Secure
Documents are checked for compliance and terms before you make payment
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. |
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 manufacturing industries. |
- 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
- 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
Help when you need it
Our experts can offer you advice and expertise
Leverage our “AA-” and “Aa1” credit ratings
Provide your sellers with assurances of payment through our Letters of Credit
Save time and ensure fast delivery
Apply for a Letter of Credit online via DBS IDEAL, our online banking platform
Call
From overseas: +6221 8082 6902
In Indonesia: 1500380
Operating hours: 8.00 am to 5.00 pm, Mon - Fri (excluding Public Holiday)
That's great to hear. Anything you'd like to add?
We're sorry to hear that. How can we do better?