Import Letters of Credit
The reassurance you need to do business abroad
Go global with confidence. An Import Letter of Credit from Yorkshire Bank can guarantee your supplier that we will pay them once they comply fully with the terms and conditions of the Letter of Credit. An Import Letter of Credit can often allow you to negotiate extended credit terms and gives reassurance to your supplier to start production and shipment of your goods.
- Your local Business Manager or Business Advisor can help you with the process at all stages
- Protection for both parties involved
- Improved cash flow – delay payment until after goods are shipped
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
- Security – the buyer will only pay if the exporter complies fully with the terms
- Finance – suppliers can often use your Letter of Credit to raise pre-shipment finance
- Priority – you may find that goods paid for under a Letter of Credit receive priority over goods paid for by other methods
- Control – as the applicant you can dictate with 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
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)
- 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
Complementary Solutions
Important Information
- Charges apply for Import 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 & 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
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.
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.