A Letter of Credit for you as importer

You and the exporter decide which documents and conditions you want in your L/C. Next, you instruct ABN AMRO to open the L/C. We open the L/C and send it to the advising bank. The advising bank checks things like the authenticity of the L/C and notifies the exporter.

As soon as the goods have shipped, the exporter draws up the agreed documents and sends them to the advising bank. The advising bank checks the documents and forwards them to ABN AMRO. We check that the documents correspond with the conditions of the L/C. If not, we will contact you.

An import L/C gives you greater security that goods will be delivered on time and correctly. You will not be required to pay until the exporter has shipped the goods and the documents comply with the terms of the L/C. In addition, the exporter gives security of payment, which improves your negotiating position.

1. The basis of doing business internationally is trust. So make sure that you know the exporter well enough.
2. Banks check documents, not goods.
3. Once ABN AMRO has checked the documents and concluded that they comply with the terms of the L/C, ABN AMRO is obliged to pay out on the L/C. This is because we have irrevocably undertaken to pay upon submission of L/C-compliant documents.
4. Make sure that you have enough working capital in your account. When opening an L/C on your instruction, ABN AMRO undertakes to pay a certain amount when all the terms of the L/C are met. ABN AMRO will therefore freeze this amount in your account.

If you want to change an import L/C, call our Trade Finance Operations on +31 (0)10 402 54 44.

Get in touch with your contact at ABN AMRO. If you are not sure whether an import L/C is right in your situation, you can use the choice guide (in Dutch) to help you decide, or call our Trade Finance Operations on +31 (0)10 402 54 44 (local rates apply).