Import letters of credit

We can hold your payment for goods that you're importing until your supplier sends us documents proving they've shipped the goods.

Key features and benefits

Minimises the risk of paying offshore suppliers before delivery.
You can be more confident that you'll get what you ordered.
We guarantee payment.
Your supplier knows they're going to get paid for what they ship.

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How it works

Guarantee

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.
Binding

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
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.

Lending criteria

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.
Costs

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

Talk to us

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