SOUTH-AFRICA LETTER OF CREDIT

SOUTH-AFRICA LC ISSUING BANK CONFIRMING BANK CHARGES

SOUTH-AFRICA LETTER OF CREDIT CONFIRMATION FEE

For South-Africa, when an exporter has concluded a commercial export contract with a South-African importer and the two parties do not know each other, the irrevocable and confirmed letter of credit is the most appropriate instrument to mitigate the risks.

The South-African importer will ask the South-African bank to issue a letter of credit for the benefit of the exporter who will have previously named the name of the notifying and confirming bank to be accepted by the exporter.

For South-Africa, the exporter must choose a confirming bank that has in its network of correspondents the South-African bank that is proposed by the importer but also the one that has an acceptable credit rating so that there is no default of payment from the confirming bank.

A letter of credit issued in South-Africa is usually confirmed by a big number of banks which are prepared to take the risks of South-African banks and make sure the beneficiary of the LC or exporter obtain his payment.

LIST OF SOUTH-AFRICAN BANKS ISSUING LETTERS OF CREDIT AND WHICH ARE ACCEPTED BY THE BANKS OF EXPORTERS

  • Absa Group Limited

  • First National Bank

  • Nedbank Limited

  • Standard Bank of South Africa

  • Capitec Bank Limited

  • FirstRand Bank

  • Discovery Limited

CONFIRMING BANKS FOR LETTER OF CREDIT ISSUED THROUGH SOUTH-AFRICAN BANKS

Banks which are confirm the letters of credit issued in South-Africa by South-African banks are: (please contact us to obtain the list or to be listed as confirming bank).

SOUTH-AFRICA: CONFIRMATION FEE FOR LETTER OF CREDIT FROM A SOUTH-AFRICAN BANK

Confirmation charges and fees for letters of credit issued through South-African banks can be obtained on demand by emailing: info@tradefinance.africa.

TRADEFINANCE.AFRICA COUNTRIES OF EXPERTISE