Financial Solutions

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A widely acceptable way of paying for imported goods

Benefits

• Local expert - your local International Trade Partner can help you with the process at all stages
  
  
• Protection - both parties receive protection, if the exporter complies exactly with the terms they will get paid. The buyer will only have to pay if the exporter complies fully with the terms
  
  
• Finance - suppliers can often use your Letter of Credit to raise pre-shipment finance from their bankers
  
  
• Improved cash flow - instead of paying with your order you can often delay payment until after goods are shipped. You may also be able to receive extended credit terms
  
  
• Priority - you may find that production and shipment of goods paid for under a Letter of Credit receive priority over goods paid for by other methods
  
  
• Control - as the applicant for an import Letter of Credit you can dictate within the Letter of Credit the terms and conditions under which your bank will make payment
  
  
• Flexibility - Letters of Credit are very flexible and can be used in lots of different situations. They can be made to match specific business needs
  
  
• Electronic applications - you can apply for Letters of Credit from your own computer using the electronic bank system ' Yorkshire Bank International Trade Connect®'† - available on the Yorkshire Bank website. Speak to your International Trade Partner for more details

Features

• Letters of Credit are irrevocable unless otherwise stated
  
  
• Letters of Credit are governed by internationally accepted rules and regulations known as the Uniform Customs and Practice for Documentary Credits (UCP)
  
  
• The issuing bank deals in documents, not goods. If the documents are presented exactly in compliance with the terms and conditions of the Letter of Credit the bank will make payment
  
  
• Ensure you know who is paying the charges under the Letter of Credit
  
  
• The Letter of Credit may need to be issued some time before the goods are shipped
  
  
• Personal attention - dedicated Relationship Partner who can make decisions - fast

What it costs

• Standard charges apply but may be individually negotiated - speak to your International Trade Partner for more details

Terms and conditions

• Letters of Credit are issued subject to the Uniforms Customs & Practice for Documentary Credits (UCP). This set of rules is produced by the International Chamber of Commerce
  
  
• Prior to an import Letter of Credit being issued by Clydesdale Bank you must have arranged a suitable facility and have signed the appropriate documentation. You may be asked to provide collateral