Want to make sure you get paid when you supply goods? Or that you only pay for goods once they are on their way to you? A Letter of Credit from ING gives you this certainty. This is particularly important if you do not yet know your business partner well. But even a trusted business partner can run into financial difficulties.
"},"title":"More certainty when importing and exporting"},{"componentType":"paragraph","richBody":{"value":"A Letter of Credit gives you greater certainty that you will be paid for your goods after shipment.
If you export goods, your customer’s bank pays for them once the required documents have been presented. Want even more certainty? We can confirm the Letter of Credit. This means you are assured of payment, whether or not the importer’s bank pays.
If you import goods, a Letter of Credit gives you greater certainty that you only pay after your supplier has shipped the goods. This helps you reduce your risks.
A Letter of Credit is also known as a documentary credit.
If you want to use a Letter of Credit, it is a good idea to mention this when preparing your quotation, as it may affect the price of your product. You will also need to agree certain details during the quotation and contract negotiations, such as transport arrangements, guarantees and insurance.
"},"title":"What is a Letter of Credit?"},{"componentType":"paragraph","richBody":{"value":"A Standby Letter of Credit works in the same way as an international bank guarantee, but is issued in the form of a Letter of Credit. If your customer does not pay, a Standby Letter of Credit means you can still receive payment when you present the required trade documents. Standby Letters of Credit are widely used in the United States.
"},"title":"What is a Standby Letter of Credit?"},{"componentType":"sectionTitle","title":"Letter of Credit for exporters"},{"componentType":"paragraph","richBody":{"value":"With a Letter of Credit, it is important that the documents are prepared correctly and checked carefully. Take a look at the steps involved and where risks may arise.
"}},{"componentType":"paragraph","richBody":{"value":"Your customer needs to apply for the Letter of Credit. They open a Letter of Credit with their bank containing the terms you have agreed.
Ask for the Letter of Credit to be sent to ING. We will check its contents and validity, and you will also receive a copy.
Read it carefully. Check that all your agreements are included and that no additional conditions have been added. Also check whether it contains any conditions you already know you cannot meet. This is the time to ask your customer to make any final amendments
"},"title":"Opening a Letter of Credit"},{"componentType":"paragraph","richBody":{"value":"Once the Letter of Credit is final, you can produce the goods and prepare them for shipment. You can also start preparing the trade documents.
The Letter of Credit or ING’s accompanying document tells you which documents you need to present and when. Then send the trade documents to ING by registered post.
"},"title":"Shipping the goods"},{"componentType":"paragraph","richBody":{"value":"ING checks the trade documents and sends them to your business partner’s bank. That bank checks them again and processes the payment.
When you are paid under the Letter of Credit depends on the terms you and your customer have agreed. If your customer does not pay, they will not receive the documents they need to clear the goods through customs.
"},"title":"Payment"},{"accordionList":[{"richBody":{"value":"If you ask us to confirm the Letter of Credit, we commit to making the agreed payment. We take on the risk, giving you certainty that the funds will be available even if, for whatever reason, your customer or their bank is unable to meet its obligation, or if the country is affected by political or economic problems.
Want to know more about confirmation, including which banks we work with? Contact us.
"},"title":"Extra security: confirmation of the Letter of Credit"},{"richBody":{"value":"Have you extended supplier credit to your customer but do not want to wait until they have paid the amount due? With our financing after delivery service, ING pays you the amount earlier. This is known as discounting, giving you access to your money sooner.
"},"title":"Additional service: financing after delivery"}],"componentType":"accordion"},{"componentType":"sectionTitle","title":"Advice"},{"componentType":"paragraph","richBody":{"value":"Need advice about a (Standby) Letter of Credit? Our Trade Finance Service Desk specialists are ready to help.
Call the Trade Finance Service Desk on 020 563 90 90, Monday to Friday between 08:00 and 17:00, or email your question to LCdesk@ing.com
"}},{"componentType":"sectionTitle","title":"Terms and conditions"},{"componentType":"paragraph","richBody":{"value":"
Before you start using a Letter of Credit, it is important to know what to expect. To open a Letter of Credit, you need to have an account with us. During the term of the Letter of Credit, the amount is either blocked on one of your business accounts or deducted from your available credit facility.
"}},{"componentType":"sectionTitle","title":"Costs"},{"componentType":"paragraph","richBody":{"value":"
"}},{"componentType":"sectionTitle","title":"Collaboration"},{"componentType":"paragraph","richBody":{"value":"
Working with a Letter of Credit can be complex. If you need support, there are companies that can help you.
"},"title":"Help with a Letter of Credit"},{"componentType":"paragraph","richBody":{"value":"You decide how much support you want. This means you can get exactly the help you’re looking for. You can outsource the entire process or, for example, get help with your export documents only.
Want to know more? See below for the services and contact details of Elceco B.V., Leo Penders Consultancy B.V. and Exportdocumenten.com.
"},"title":"You decide how much support you need"},{"accordionList":[{"richBody":{"value":"Elceco handles your Letter of Credit for you. They can take care of almost every aspect of the process. This helps you minimise your risks and focus on what matters most to your business.
Elceco’s services include:
In addition to handling Letters of Credit, Elceco can help you with Documentary Collections and other types of export shipments. They also regularly provide training on working with and handling Letters of Credit.
Elceco charges a fixed fee per Letter of Credit.
"},"title":"Elceco B.V. - Helps with your Letter of Credit"},{"richBody":{"value":"Leo Penders Consultancy B.V. has many years of experience in Trade Finance, focusing on the financial settlement of export transactions. Its main services include:
Want quick and easy access to your export documents? At Exportdocumenten.com, you can order all your export documents online. You can also arrange for your commercial invoices or other documents to be legalised.
Exportdocumenten.com offers:
Once you’ve created an account, you can order your documents straight away. You pay per document and can see the costs online immediately. There’s no need to invest in hardware or software, or take out contracts or licences.
"},"title":"Exportdocumenten.com - Apply for export documents online"}],"componentType":"accordion"},{"componentType":"sectionTitle","title":"Frequently asked questions"},{"accordionList":[{"richBody":{"value":"This type of ‘back-to-back’ financing isn’t available at ING.
"},"title":"Can I use an export Letter of Credit I’ve received to finance an import Letter of Credit?"},{"richBody":{"value":"
In documentary payments, a bill of exchange can be used as a payment instrument. You can transfer a bill of exchange to another party by signing and stamping the back with your company stamp. This is known as endorsement.
Insurance policies and bills of lading can also be transferred in this way.
"},"title":"What is endorsement?"},{"richBody":{"value":"Documentary payments are governed by international rules and regulations published by the International Chamber of Commerce (ICC):
You can’t apply for a Letter of Credit through Mijn ING Zakelijk. Please use the Letter of Credit application form.
Do you have more than 9 Letters of Credit a year? You can use our online InsideBusiness Trade portal. It makes it easy to track your applications and the status of your documentary payments. You can also make changes easily.
The portal is secure, easy to use and can be tailored to your needs, helping you get things done faster.
"},"title":"Can I apply for a Letter of Credit through Mijn ING Zakelijk?"}],"componentType":"accordion"},{"componentType":"linkList","iconTitle":{"title":"Financieren"},"textLinks":[{"text":"Lenen, Leasen & Financieren Overzicht","url":"/zakelijk/financieren"},{"text":"In 5 stappen een financiering voor je onderneming","url":"/zakelijk/financieren/zakelijke-lening/in-5-stappen-een-financiering-voor-je-onderneming"},{"text":"Andere financieringsmogelijkheden","url":"/zakelijk/financieren/overige-mogelijkheden"},{"text":"Trade Finance Services","url":"/zakelijk/internationaal-ondernemen/trade-finance-services"},{"text":"Lopende financiering aanpassen","url":"/zakelijk/financieren/financiering-wijzigen"}]}]},"hasMacro":false,"id":"70d5f471-e56b-4796-bd21-d5a66e7c25f1","localeString":"en-GB","mainHeaderZone":{"backLink":{"textLink":{"text":"Trade Finance Services","url":"/en/business/international-trade/trade-finance-services"}},"componentType":"productHeader","coreHeader":{"headerImage":{"altTextDE":"\"\"","altTextEN":"\"\"","altTextFR":"\"\"","altTextNL":"\"\"","extension":"jpg","original":"https://assets.ing.com/m/70e4ae23c08cfe59/original/Cargo-being-loaded-on-an-airplane-by-five-workers-in-reflective-clothes.JPG","publishedAt":"2022-05-26T14:39:07Z","transformBaseUrl":"https://assets.ing.com/transform/7db19d5d-5267-48a9-861d-9837b7af0fd9/Cargo-being-loaded-on-an-airplane-by-five-workers-in-reflective-clothes","type":"image","updatedAt":"2022-08-22T08:57:43Z","width":5200},"title":"Letter of Credit"},"usps":[{"body":"Reduce your risks in international transactions","icon":{"extension":"png","original":"https://assets.ing.com/m/67bec23b9f25828f/original/Check_mark_outline_orange_RGB.png","publishedAt":"2022-05-26T14:51:52Z","transformBaseUrl":"https://assets.ing.com/transform/fd8aae40-b81e-406e-bf85-a0761dfb0f93/Check_mark_outline_orange_RGB","type":"image","updatedAt":"2022-05-31T12:19:42Z","width":267}},{"body":"Agree the terms of the transaction with your business partner","icon":{"extension":"png","original":"https://assets.ing.com/m/67bec23b9f25828f/original/Check_mark_outline_orange_RGB.png","publishedAt":"2022-05-26T14:51:52Z","transformBaseUrl":"https://assets.ing.com/transform/fd8aae40-b81e-406e-bf85-a0761dfb0f93/Check_mark_outline_orange_RGB","type":"image","updatedAt":"2022-05-31T12:19:42Z","width":267}},{"body":"Internationally accepted solution","icon":{"extension":"png","original":"https://assets.ing.com/m/67bec23b9f25828f/original/Check_mark_outline_orange_RGB.png","publishedAt":"2022-05-26T14:51:52Z","transformBaseUrl":"https://assets.ing.com/transform/fd8aae40-b81e-406e-bf85-a0761dfb0f93/Check_mark_outline_orange_RGB","type":"image","updatedAt":"2022-05-31T12:19:42Z","width":267}}]},"publishDate":"2026-10-28T15:37:13.280+01:00"}}