Import documentary letter of credit
Helps you control payment terms and conditions
An import documentary letter of credit is a formal undertaking by Westpac to pay your supplier, provided they meet the terms and conditions of the documentary credit.
Import documentary letter of credit at a glance
- We receive the documents from the seller's bank and check to ensure they comply with the terms and conditions of the credit. The documents will then be released to you for collection of goods
- Internationally accepted rules apply as determined by the International Chamber of Commerce (ICC)
- You specify documentation to accompany each shipment
- You nominate the deadlines for shipment issued on a 'sight' or 'term' basis. 'Sight' means that drafts are drawn for immediate payment, 'term' means that drafts are drawn on a term payment basis, e.g. 30 days after sight, 90 days from bill of lading.
Benefits
Apart from being a secure form of payment, this facility helps you:
- Establish credit worthiness with your supplier
- Control payment terms and conditions.
Things you should know
Credit facilities are subject to application and the Bank's normal lending assessment criteria. Fees and charges may apply to the products and services listed. Full details of the Terms and Conditions for all the products and services which do not have a Product Disclosure Statement are available on application.