Provide assurance to your suppliers when the complying documents are presented
Build relationships with clients and support new business opportunities with a DBS Letter of Credit. We issue a Letter of Credit at your request, assuring payment up to a stated amount within a prescribed time. We then check that the documents received are in compliance with the Letter of Credit terms and certify them before you make payment.
How does a Letter of Credit work?
Why choose DBS Letters of Credit or Surat Kredit Berdokumen Dalam Negeri (SKBDN)?
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
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
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
Please call our DBS Indonesia Customer Centre at 1500 327 or 69 327 (if using a mobile phone) for more information.
No, you must obtain a credit facility with DBS before we can issue a Letter of Credit to your sellers. Please call our DBS Indonesia Customer Centre at 1500 327 or 69 327 (if using a mobile phone) for more 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.
How do I apply?
To apply, you will need to have the Letter of Credit facility with DBS. Please then submit the following documents to any of our branches:
Please call our DBS Indonesia Customer Centre at 1500 327 or 69 327 (if using a mobile phone) if you need assistance.