An import letter of credit is issued by Kiwibank on your behalf. It's a guarantee that we'll pay your supplier for their goods once they send us shipping documents proving that they've shipped the goods. It's issued to your supplier's bank electronically.
An import letter of credit is binding. We're committed to making the payment on an agreed date once we receive the documents.
Shipping documents could be:
commercial invoices showing the goods supplied and the price
packing lists showing details of how the goods are packed
a bill of lading that shows the goods have been loaded on a ship offshore - and are bound for the correct port in New Zealand
documents showing that the goods are insured for the journey.
When you organise your import letter of credit, you'll have to satisfy our lending criteria and we'll give you a facility limit. You can then arrange future letters of credit to this limit.