Documentary letter of credit

Decrease business risks in international operations.


Payment insurance


Documentary letter of credit is a form of payment that enables both business partners to insure their payment in international operations.

Operations with documents not goods


Letters of credit are characteristically distinct from purchase contracts and other contracts. Participants in letters of credit operate with documents and not with goods.

Payment obligation of the bank


The bank is obliged to carry out payment if the documents indicated in the documentary letter of credit are submitted on time.

Import (NOSTRO) letters of credit

If you import goods, a letter of credit offers you a suitable negotiating position towards the exporter. By opening a letter of credit, you insure yourself by specifying the documents on the basis of which you will take over and pay for goods as agreed with the exporter upon the conclusion of a transaction.

  • Letter of credit with deposit cover
    On the day of opening a letter of credit abroad, the importer authorizes the bank to debit their transaction account or transfer funds onto a special account where they wait until the date of payment abroad under the letter of credit.
  • Import letter of credit with deferred payment
    On the basis of an approved overdraft and established insurance, SKB concludes with the buyer (importer) a contract on the issuing of letter of credit with deferred payment and issues the letter of credit.

Export (LORO) letters of credit

It is important for an exporter that payment is guaranteed on dispatch. When all the terms defined in the export letter of credit are complied with, you receive a payment, which is guaranteed by the bank that has issued the documentary credit.

SKB Bank experts help exporters:

  • Draw on the letter of credit by submitting documents belonging to the letter of credit;
  • Specify the payment terms;
  • Check the arrival of the letter of credit.

Making a payment under the letter of credit

In accordance with the letter of credit, you can pay as soon as you submit and verify the equivalence of documents (letter of credit on demand) or on deferred terms (60, 90 or 120 days from the date specified in the letter of credit). In the case of a letter of credit, the bank assumes the obligation to pay abroad instead of the importer.

In dealing with letters of credit, Uniform Customs and Practice for Documentary Credits 2007 Revision UCP 600 applies.

Digital banking

With mobile and online bank, you can arrange as many as 53 different tasks without visiting the bank.:

  • Submitting application for approval of extra overdraft facility.
  • Submitting application for order of consumer loan.
  • Submitting application for obtaining Visa credit card.
  • Paying and receiving invoices and e-invoices.
  • Overview of balance and spending.

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Make an appointment with the advisor

Your relationship officer will wait for you in the outlet on the agreed upon date and time. 
With his help, you will be able to arrange everything quickly and easily.

Make an appointment or Send an inquiry

It's good to know
who you trust with your finances

SKB bank

  • Excells in safety, stability and reliability in Slovene banking space.
  • Part of OTP Group, one of the biggest and most stable financial services providers in Central and Eastern Europe.
  • Trusted by more than 200.000 clients.

Frequently asked questions

Documentary letters of credit are intended for business owners doing business with business partners abroad and for domestic exporters who wish to secure their claims towards partners abroad.

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