Export Letters of Credit
Be confident of being paid for goods sold overseas on time
Be certain of receiving payment on time. An Export Letter of Credit is a conditional bank guarantee of payment to help make your business banking easier. It will help ensure you receive payment on time. Payment is conditional upon all of the terms and conditions of the Letter of Credit being met. In effect the issuing Bank in the country of the buyer provides a definite commitment to pay a supplier on behalf of the buyer.
- Issuing bank acts as a guarantor independent of the buyer
- Both parties receive protection
To find out more:
- Call into your nearest branch or call 0845 606 4477
- If you’re an existing Business customer, contact your Business Manager
- Existing Business Direct customers, call 0845 606 4477
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
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 Business Manager or Business Advisor for more details
- Letters of Credit are issued subject to the Uniform Customs and Practice for Documentary Credits (UCP). This set of rules is 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.
*This service may be temporarily unavailable during periods of routine maintenance.
Yorkshire Bank is a trading name of Clydesdale Bank PLC which is authorised and regulated by the Financial Services Authority (FSA Register No. 121873). Credit facilities other than regulated mortgages are not regulated by the Financial Services Authority. Clydesdale Bank PLC, Registered in Scotland (No. SC001111), Registered Office: 30 St. Vincent Place, Glasgow, G1 2HL. A member of the National Australia Bank Group of companies.