Letter of Credit
Suitable for buying and selling products across national borders.
Security for international trade
Financing of products en route
Guarantee of payment
What is a Letter of Credit?
A Letter of Credit is a conditional payment confirmation. The buyer’s bank promises to pay the invoiced amount to the seller’s bank, according to the rules described in the Letter of Credit.
Advantages for the buyer
- the products are sent before the seller receives payment;
- easier control of the date of the product’s arrival;
- easier access to credit or a price reduction;
- the bank will wholly or partly be able to finance the products;
- The entity providing the Letter of Credit for a product delivery often takes precedence when there is a shortage of stock
Advantages for the seller
- Security that the payment will be made
- Financing of the product while it’s en route
- Can disregard the buyer’s financial position.The order cannot be cancelled without consent
- Guaranteed by the bank that payment will be made on the agreed date
Forms and templates
Import Letter of Credit
Export Letter of Credit
Request to transfer Letter of Credit (in Norwegian only) (PDF)Open the file in a new tab
Accompanying letter for export Letter of Credit (in Norwegian only) (PDF)Open the file in a new tab
Checklist for new Letter of Credit deals (in Norwegian only) (PDF)Open the file in a new tab
Draft/Bill of exchange (in Norwegian only) (PDF)Open the file in a new tab
Incoterms 2010 (in Norwegian only) (PDF)Open the file in a new tab
The Letter of Credit’s current sequence number (in Norwegian only) (PDF)Open the file in a new tab
Would you like to order a Letter of Credit?
An application for a Letter of Credit undergoes the same credit assessment as an application for credit or a loan.
We are available from Monday to Friday between 08:00 and 16:00 Call us on +47 950 91708. If you have a client manager at DNB you can contact them directly.