Managing Risk

Letters of Credit

Why use a Letter of credit?

Secure method of settlement  

Reduce the risk of non- payment for delivered goods

Once Issued are legally binding

Irrevocable and cannot be cancelled unless all parties agree

Letters of credit in detail...

Benefits

Expand into new markets

Export letters of credit could enable you to trade in markets where other types of payment could be risky.

Payment security

Ship goods in the knowledge that, providing your documentation is in order, you'll receive immediate payment or an agreement to pay in the future from us or the buyer’s bank.

Easy document management

Use MaxTrad to raise and manage your letter of credit business, allowing you to check the status of transactions through a secure online platform.

Secure finance

Letters of credit could increase your chances of securing pre-shipping finance.

Features

Import Letters of Credit

Import letters of credit reassure your overseas suppliers about receiving payment and they assure you about the receipt of your goods from overseas before you pay. This gives you confidence that the goods you buy will be as ordered, and they will be delivered at the agreed time and place.

Export Letters of Credit

Export letters of credit are payment commitments given by your buyer’s bank providing that you fulfil the terms and provide the documentation as required within the letter of credit.

Guarantee payments

When exporting to developing countries – we may consider ‘confirming’ the letter of credit. This means that, subject to the terms of the letter of credit being met and all documents being in order, we'll guarantee payment in the event that the buyer’s bank is unable to.

Factsheet

Export Letters of Credit factsheet

Our Export Letter of Credit enables you to trade goods safe in the knowledge that you will receive payment. This is because Export Letters of Credit provide a commitment given by the buyer’s bank that they will pay on behalf of their client, provided certain pre-agreed conditions are met. This product is sometimes called a Documentary Credit.

Import Letter of Credit factsheet

An Import Letter of Credit is a commitment given by us to pay your supplier on your behalf using a credit facility that you have pre-agreed. Payment is only made if we receive specified documents about the transaction from your supplier.

Let's get started

Is your business turnover...

Thanks, now tell us what sort of customer you are

Ready to apply

If you’re a UK customer, simply click the button to start your application online. Alternatively, you can always talk to your relationship manager or give us a ring on the number below.

Application subject to customer credit line facilities. Fees and charges will apply for these services.

Contact us on: 0345 050 0519

Text Relay: 18001 0345 303 0077

Lines are open 9.00am-5.00pm, Monday to Friday (except public holidays).

Calls may be recorded and call charges from residential, business and mobiles vary, depending on your telephone operator’s tariff.

If you’re a customer registered abroad, or you’d prefer to apply offline, you can download an application form below.

Are you a new customer interested in Letters of Credit?

Please call our trade finance specialists who can talk you through solutions tailored specifically for you.

Contact us on: 0345 050 0519

Text Relay: 18001 0345 303 0077

Lines are open 9.00am-5.00pm, Monday to Friday (except public holidays).

Calls may be recorded and call charges from residential, business and mobiles vary, depending on your telephone operator’s tariff.

Thanks now tell us what sort of customer you are

Ready to apply

If you’re a UK customer, simply click the button to start your application online. Alternatively, you can always talk to your relationship manager or give us a ring on the number below.

Application subject to customer credit line facilities. Fees and charges will apply for these services.

Contact us on: 0345 050 0692

Text Relay: 18001 0345 303 0077

Lines are open 9.00am-5.00pm, Monday to Friday (except public holidays).

Calls may be recorded and call charges from residential, business and mobiles vary, depending on your telephone operator’s tariff.

If you’re a customer registered abroad, or you’d prefer to apply offline, you can download an application form below.

Are you a new customer interested in Letters of Credit?

Please call our trade finance specialists who can talk you through solutions tailored specifically for you.

Contact us on: 0345 050 0692

Text Relay: 18001 0345 303 0077

Lines are open 9.00am-5.00pm, Monday to Friday (except public holidays).

Calls may be recorded and call charges from residential, business and mobiles vary, depending on your telephone operator’s tariff.

Additional support for your business

Managing Risk

Help protect against the impact of exchange rate fluctuations and the risk of not being paid

MaxTrad

Our secure online platform lets you manage your international trade transactions from anywhere, 24 hours a day

Something else we can help you with?