Export Letters of Credit

More Benefits

• Separate – the Letter of Credit is paid upon presentation of compliant documents. Payment is independent from the commercial contract
• Finance – buyers overseas often need extended credit terms. Exporters may be able to offer such terms and then use acceptances under the Letter of Credit to assist their cashflow
• Confirmation – in some cases the Letter of Credit can be co-guaranteed by a bank in the UK by means of a confirmation being added. This transfers the risk from the buyer’s bank and the buyer’s country to a known bank in the UK

Further Features

• Letters of Credit are irrevocable even if there is no indication to that effect
• Letters of Credit are governed by internationally accepted rules and regulations known as the Uniform Customs and Practice for Documentary Credits (UCP)
• All Letters of Credit must be checked thoroughly as they have dates that must be met, and terms and conditions that must be complied with – otherwise the protection offered ceases to exist

Complementary Solutions

• Documentary Collections
• Foreign Exchange

Important Information

• Charges apply for Export Letters of Credit. Standard charges can be found in the interest rates and charges section. Other fees may be individually negotiated – speak to your International Trade Partner for more details
• Letters of Credit are issued subject to the Uniform Customs & Practice for Documentary Credits (UCP). These set of rules are produced by the International Chamber of Commerce 

In the event of non payment, breach of covenant, or non compliance with terms and conditions, we may proceed to make a call on, or realise any security pledged in support of the borrowing.

CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.