A letter of credit is an undertaking given by a bank to pay the exporter, provided they meet the terms and conditions of the letter.
As an exporter, you might ask for a letter of credit if you're unsure of the importer's ability to pay. By receiving a letter of credit from a bank, you gain that bank's payment commitment and minimise your credit risk for the transaction.
As an importer letters of credit allow you to buy goods internationally where you otherwise might not be able to. Leveraging NAB's strong credit ratings, your supplier can be assured of payment and you can meet your business needs.