Documentary Credit is a payment method in which the issuing bank, as per applicant’s (the Importer) request, undertakes to pay the prescribed amount for the beneficiary (the Exporter) or accept the draft issued by the beneficiary as long as the shipping documents are in conformity with the L/C terms and conditions.

In Indonesia, we also known ‘Surat Kredit Berdokumen Dalam Negeri (SKBDN)’, as well as L/C, SKBDN is also payment’s Guarantee for sale-purchase transactions in the territory of Indonesia. The difference, the L/C’s transaction is subject to international rules UCP 600, while SKBDN is subject to PBI no. 5/6/PBI/2003.

Description

Shinhan Bank Indonesia, as per customer’s (the Importer) request, issues documentary credit to undertake to pay for the beneficiary (the Exporter) immediately or within the prescribed time limit as long as the presented documents are in conformity with all terms and conditions mentioned in L/C.

There are two types of L/C, as follow:

• Sight L/C
  You receive document and payment is to be effected in maximum 5 (five) working days (L/C) and 7 (seven) working days (SKBDN)
• Usance L/C
  You receive document Rafter confirming or doing acceptance on the maturity date and we shall debit your account to effect the payment on the prescribed maturity date.

Benefits

• A secure payment method for both importer and exporter
• Ensure that supplier has complied with the prescribed terms and conditions before you make payment
• Ensure working capitals and improve cash flow
• Documentary Credit issued by Shinhan Bank Indonesia is acceptable by all correspondent banks worldwide
• Quick and simple procedure, which is L/C is to be issued within 8 working hours
• Accessible and strong financial support with competitive tariff
• Professional consultancy is provided by our staff in order to reduce your cost and risk

Requirements

• Application form for L/C opening
• SIUP, TDP, NPWP, Deed of Company establishment with the amendments
• Sales contract or purchase order
• Import identifications numbers or Limited Import identifications numbers
• Legal document for opening new account (first transaction with the Bank)
• Having L/C’s Line with sufficient collateral and approved by loan/credit committee
• The parties involved in L/C are not included in the sanctions globally or locally (UN, OFAC, UK, EU, and Local sanction list)

Description

Shinhan Bank Indonesia makes the amendment of L/C as per customer’s request (the Importer).

Benefits

• The amendment of L/C is processed quickly and conveniently
• Staff of Shinhan Bank Indonesia shall check all terms and conditions of amendment and provide accurate consultancy to ensure your benefits

Requirements

• Application form for L/C amendment
• Original L/C and its amendments

Description

Shinhan Bank Indonesia undertakes to make payment of L/C value upon receipt of shipping document in accordance with L/C terms & conditions or upon your acceptance of payment on discrepant shipping document.

Benefits

• Protect you from and reduce the risk in international payment process
• Payment is made within the shortest time and at reasonable fee

Requirements

• Original L/C
• Full set of shipping document

Description

It is a short-term working capital financing for importir customers for Sight L/C payments that have matured. Payments will be provided on the basis of submission Trust Receipt (as a legal document).

Requirements

• TR credit facility which is approved by loan/credit committee
• Term or maturity date of TR facility maksimum 180 days
• Maximum financing 100% of L/C or document value
• TR for usance L/C can be financing if term of maturity of usance L/C plus term of TR facility still within the term of it’s facility.

Documents for TR Transaction

• Arrival Notice
• Promissory Note
• Trust Receipt
• Copy of original impor documents which will be financing

Description

Documentary Collection is a payment method in which an exporter assigns a bank, on their behalf, to collect the money based on the enclosed shipping document.

Shinhan Bank Indonesia receives ,checks, and notifies the arrival of the shipping document along with the related conditions from foreign bank, and then makes payment as per instruction of the foreign bank.

Benefits

• A cost-effective and secure method for international trade
• Enable you to receive goods before payment
• Eliminate the need for credit facilities
• A simpler alternative to Documentary Credit
• Provide access to goods without delay
• Payment is made within the shortest time and at the most reasonable fee

Requirements

After Shinhan Bank informs you the arrival of the shipping document within a day, you must perform one of these two in order to be able to accept the document

• D/P (Document against Payment)
  You are required to make payment in order to receive the shipping document
• D/A (Document against Acceptance)
  You are required to make a written promise to make payment or acceptance on the payment of draft on the maturity date in order to receive the shipping document