Why an export letter of credit?

  • The buyer's bank guarantees payment — so 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.

How it works

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

The 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’ve insured the goods for the journey.

The payment date can be:

  • as soon as the buyer’s bank receives the documents
  • a date agreed by you and the buyer — either after the 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 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 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.

What it costs

For pricing, please email our Trade Finance Team at tradefinance@kiwibank.co.nz.