Export letter of Credit (ELC)

A method of payment commonly used in international trade transactions, whereby the advising bank facilitates payment to the exporter, provided the exporter complies with the terms and conditions of the letter of credit.

Export Letter of Credit carries the credit risks of the issuing bank and the political risks of the issuing bank’s country. A letter of credit may also be referred to as a documentary credit.


An irrevocable letter of credit may not be canceled or changed without any consent of all parties involved (importer, exporter and the issuing bank).

It is payable upon presentation of certain documents.

It can be transferred to a third party if stipulated in the letter of credit.


Namibian exporter is assured of receiving a payment if it complies with all terms and conditions of the letter of credit.

Exporter relies upon the creditworthiness of the issuing bank.

The exporter may offer extended terms of payment through a letter of credit.

Types of letter of credit

  • Sight – payment made to the seller when the required documents have been submitted to the authorized bank.
  • Deferred – the payment to the seller cannot be made when the documents are submitted, but instead at the later time “usance” LC).
  • Acceptance – the seller can request the bank to discount the bill of exchange.
  • Negotiable credit – Negotiation of advancing payment to the beneficiary on or before reimbursement date, on presentation of documents to the exporter’s bank.


Commemorative N$30 BankNotes

15 of May 2020

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02 of April 2020

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27 of March 2020

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