Export letters of credit

If you're shipping goods internationally, your buyer can issue a letter of credit through their bank. Their bank will guarantee payment, but won't make the payment until you've sent documents proving the goods are on the way.

Key features and benefits

  • The buyer's bank guarantees payment.

  • You know you're going to get paid for what you ship.

  • Your buyer can be more confident that they'll get what they ordered.

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How it works

  • Sending documents

    Your buyer's bank holds your payment for the goods you're exporting until you send them shipping documents proving that you've shipped the goods.

  • Costs

    Costs will vary, so please talk to our business banking team for pricing information.

  • Shipping documents

    Your shipping documents could be:

    • commercial invoices showing the goods you’re supplying and the price
    • packing lists that show details of how the goods are packed
    • a bill of lading that shows your goods have been loaded on a ship – and are bound for the correct port overseas
    • documents showing that you have insured the goods for the journey.

  • Payment times

    The payment date can be as soon as the buyer’s bank receives the documents, or another date agreed by you and the buyer – either after the shipping documents arrive or after the boat carrying the goods leaves port.

Confirmation of export letters of credit

Sometimes, you might need a little more confidence that your risks are covered. If you’re worried about your buyer’s bank – or they’re in a country that you think may not be financially stable – you can contact us to confirm the letter of credit.

If we confirm the export letter of credit, it means that the risk of non-payment will be on us, instead of the buyer’s bank, so you’ll stay protected.

If you want to have a export letter of credit confirmed, call us on 0800 222 490 or email international@kiwibank.co.nz. If we agree to confirm the letter, you’ll be charged a fee.

Talk to us

To find out more about export letters of credit and for pricing information, get in touch with our business banking team.

Find a business banking specialist

Find a business banking specialist in your area. Request a call back, or call them directly.

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Call us

Call our business banking team on 0800 601 601, or +64 4 803 1646 if you’re calling from overseas. Mon – Fri: 8am – 5pm.