ExportExport

Using documentary credits when you export goods or services means that the importer's bank commits itself to paying you when the conditions of the credit have been met. This offers a number of advantages:

 

  • Payment guaranteed by the importer's bank prior to shipment
  • Enhanced security of payment at the agreed time
  • Enhanced security that the order received will not be cancelled or changed without your agreement
  • Improved liquidity as payment often can be made shortly after shipment
  • Possibility of extending security to subcontractors through the documentary credit
  • The possibility of financing

It is important to note that the importer's bank will make payment only after you have complied with all its requirements and conditions. You should therefore examine the documentary credit carefully when you receive it.

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Danske Bank A/S
London Branch,
75 King William Street
London EC4N 7DT
United Kingdom

Tel: +44 (0)20 7410 8000
Fax: +44 (0)20 7410 8001

SWIFT/BIC: DABAGB2L
Sort Code: 30-12-81

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The following draft of a Documentary Credit text can be used in your offer to your customer.

Requirements for documentary credits
Within ... days from the date of ... please arrange for the issue by a first class bank of an irrevocable documentary credit to be advised by SWIFT through Danske Bank, Copenhagen, Denmark, SWIFT DABADKKK.

in our favour, with or without Danske Bank's confirmation
for the amount of ...
available for payment at sight or available for payment ...
days after shipment and payable with Danske Bank against presentation of the following documents:

signed commercial invoice
multimodal transport document or Marine Bill of Lading or other, showing consignee ...,
notify party ..., marked freight prepaid or freight collect.
Other documents e.g. packing list and certificate of origin.

covering: (description of goods) ... as per ...
evidencing shipment from: ... to: ...
terms of delivery: ... as per Incoterms 2000
partial delivery: allowed or not allowed
transshipment: allowed or not allowed
latest date of shipment: ...
the credit to be valid until: ...
the documents to be presented not later than ... days after the date of the transport
document, but in any event not later than the validity date mentioned below
charges outside country of issuance to be paid by: the beneficiary or applicant.

The Documentary Credit should also include the issuing bank's debit or reimbursement
authorisation and to state that the Credit is subject to Uniform Customs and Practice for
Documentary Credits, ICC Publications No. 600.

Want to know more?Want to know more?

Trade & Export Finance products and services

Read More about our trade & export finance products and services in these booklets (PDF):

Download factsheet on Documentary Credits
Download factsheet on Int'l Guarantees
Download factsheet on Collections
Download factsheet on Business Online

To read PDF documents, download Adobe Reader®

Document Checklist
What to look out for in every document involved in the documentary credit process:

Danske Bank A/S, London Branch, 75 King William Street, London EC4N 7DT, United Kingdom. Telephone: +44 (0)20 7410 8000 Facsimile: +44 (0)20 7410 8001 E-mail: london.info@uk.danskebank.com. VAT number: 853 7590 92. Danske Bank A/S, London Branch is authorised by the Danish Financial Supervisory Authority (Finanstilsynet) and is subject to limited regulation by the the Financial Conduct Authority and the Prudential Regulation Authority. Complaints should be addressed to our Legal Department. Details on the extent of our regulation by the Financial Conduct Authority and the Prudential Regulation Authority are available from us on request. Registered Branch in England and Wales, Company No. FC011846, Branch No. BR000080. Danske Bank A/S, Incorporated in Denmark, CVR No. 61 12 62 28 Copenhagen. Our details can also be viewed on The Financial Services Register under Firm Reference Number 124655.

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