Back-to-Back Letter of Credit

Secure the goods with your buyer’s Letter of Credit as collateral

Why you will love this

Issue a Letter of Credit to secure your supplier’s goods

Conceal the identity of your buyer and seller

Features and benefits

Mitigate payment and funds receipt risk

Assures your seller of payment by relying on our credit-worthiness and matching against funds receipt from your buyer’s Letter of Credit.

Assures your seller of payment by relying on our credit-worthiness and matching against funds receipt from your buyer’s Letter of Credit.

Facilitate complex structure

Secure goods from seller based on contract with buyer.

Secure goods from seller based on contract with buyer.

Seamless online experience

Apply and manage your trade finance transactions on desktop or mobile and get real-time status updates.

Apply and manage your trade finance transactions on desktop or mobile and get real-time status updates.

How it works
Process for pre- and post-shipment

Pre-shipment

Step 1

Your buyer issues a Letter of Credit via his bank (Issuing Bank)

Pre-shipment

Step 2

You submit an application to OCBC to issue a Letter of Credit to your seller

Pre-shipment

Step 3

OCBC issues the Letter of Credit to your seller

Pre-shipment

Step 4

Your seller ships out the goods and submits the trade documents to his bank

Post-shipment

Step 5

OCBC notifies you when the trade documents have been received and checked

Post-shipment

Step 6

You can substitute some documents from your seller with your own, to comply with the Letter of Credit from your buyer

Post-shipment

Step 7

OCBC will send the new set of documents to the Issuing Bank for payment / acceptance

Post-shipment

Step 8

OCBC will pay you for the balance when the funds are received from the Issuing Bank. This balance takes into account the deduction of charges and amount due to your seller.
Digitalise your trade finance on OCBC Velocity
Don’t have OCBC Velocity?

Don’t have OCBC Velocity?

Apply for OCBC Velocity to perform your first trade finance transaction and manage your trade finance portfolio on-the-go.

Fees and charges

Letter of Credit issuance fees
0.125% of the Letter of Credit amount monthly. Minimum of 2 months but not less than S$75 applies.
Handling fees for
Export Letter of Credit bill processing
0.125% of the bill amount. Minimum fee of S$75 applies.
Commission-in-lieu of exchange
0.125% of the bill amount. Minimum fee of S$75 applies.
Letter of Credit confirmation fees
Depending on the Letter of Credit Issuing Bank
Structuring fee
Depending on the complexity of the Letter of Credit

Interest charges may apply

How to apply

Take your business to the next level with us

Our trade finance specialists are here to understand your business requirements.
Speak to us today and apply.

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