Export letters of credit

If you're shipping goods internationally, your buyer can issue a letter of credit through their bank. Their bank will guarantee payment, but won't make the payment until you've sent documents proving the goods are on the way.

Key features & benefits

  • The buyer's bank guarantees payment.

  • 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.

Talk to us

How it works

  • Sending documents

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

  • Costs

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

  • Shipping documents

    Your 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 have insured the goods for the journey.

  • Payment times

    The payment date can be as soon as the buyer’s bank receives the documents, or another date agreed by you and the buyer – either after the shipping 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 export 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 export 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.

Talk to us

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

Talk to a business banking specialist

Complete our online form and one of business banking specialists will get back to you within one to three working days.

Find a business banker

Call us

Call our business banking team on 0800 222 490, or +64 4 803 1646 if you’re calling from overseas.

Mon – Fri: 8am – 5pm.