Import Services

Letter of Credit Issuance

Provide assurance to your suppliers when they present the required documents

Take advantage of new growth opportunities with a Letter of Credit issued by the best trade finance bank in Singapore. Our award-winning trade solutions and "AA-" and "Aa1" credit ratings have helped companies all over Asia provide assurances of payment that strengthen new business relationships. And because you can apply for a Letter of Credit online through IDEAL™, our online banking platform, you can also streamline efficiencies within your organisation.

 

Why choose DBS Letter of Credit Issuance?

  • Grow your business with the Best Trade Finance Bank in Singapore, as named by Alpha Southeast Asia and The Asian Banker in 2012. We also received this accolade from Global Finance in 2012, for the 8th consecutive year
  • Leverage our "AA-" and "Aa1" credit ratings to provide your sellers with assurances of payment through our Letters of Credit
  • Save time and ensure faster delivery by applying for a Letter of Credit online through IDEAL™, our online banking platform
  • Ensure payments are only made after the necessary documentation is received and checked by our experienced and certified documentary checker
  • Submit forms any time before 6pm (on a working day) to ensure your documents are processed on the same day. We offer one of the latest cut-off times in Singapore for your convenience
  • Leverage the expertise of our specialists

Product Details


Common types of Letter of Credit:

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

Transferable Letter of Credit

This is usually used by middleman traders who do not enjoy a credit facility.  DBS will transfer the Export Letter of Credit in favour of the ultimate seller at the request of the middleman, who will then sell the goods under the Export Letter of Credit

Back-to-Back Letter of Credit

This is used by middleman traders with a credit facility. The master Export Letter of Credit from the buyer’s bank backs the issuance of an Import Letter of Credit. Proceeds from the master Export Letter of Credit are then used to pay the bank under the Import Letter of Credit

Standby Letter of Credit

This is typically used to assure the applicant will meet the payment obligations or contractual performances specified. Another commonly used product in this situation is a Banker’s Guarantee


Item

Pricing

Issuance

1/8% per month. Min two months or SGD 80, whichever is higher

Pre-advice of Letter of Credit (Telex/SWIFT)

SGD 50

Usance Letter of Credit acceptance/deferred payment commission

1/8% per month from the expiry date to the due date. Min SGD 80

Discrepancy fee

USD 80 (or SGD 110)

Amendment

 

– Extension expiry/validity

1/8% per month on outstanding balance. Min SGD 80

– Amount

1/8% per month on the increment. Min two months or SGD 80, whichever is higher

Cancellation

SGD 80

Withdrawal of application before issuance

SGD 50

Processing fee under advance payment arrangement**

S$100

FAQs

Can you issue a Letter of Credit to my seller if I do not have a DBS credit facility?

No, you must obtain a credit facility with DBS before we can issue a Letter of Credit to your sellers. Please call us at 1800 222 2200 (if you’re in Singapore) or +65 6222 2200 (if you’re calling from overseas) should you require a credit facility.

How do I complete the Letter of Credit application form?

Please refer to our comprehensive explanatory notes or call DBS Business Care at 1800 222 2200.

Can DBS issue a Letter of Credit if the seller doesn’t provide the advising bank’s information?

Yes. We issue the Letter of Credit and advise through our network branch or agent bank in the event that we do not have a branch or office in the seller’s country.

Awards

Awards we have won recently
Best Trade Finance Bank in Singapore

Best Trade Finance Bank in Singapore

2013
Best Trade Finance Bank in Singapore

Best Trade Finance Bank in Singapore

2013
Best Trade Finance Bank in Singapore

Best Trade Finance Bank in Singapore

2012
View All

 

How do I apply?

Simply submit your letter of credit application form to any of our Trade Document Counters at Marina Bay Financial Centre, Towner and Jurong Gateway (Toh Guan). Alternatively, you can apply via IDEAL™.

Get In Touch

DBS BusinessCare 1800 222 2200

Get In Touch

DBS BusinessCare 1800 222 2200