Documentary letter of credit

Bringing certainty to your business transactions

A letter of credit gives you extra cover and control - your seller can only take payment if they comply with the terms of the deal.

Why use a letter of credit?

A letter of credit is a formal agreement, made by both parties, to pay for imported goods and services. It’s a guarantee for suppliers that they’ll receive payment, making trade deals less risky and more attractive for them.

What we offer

Certainty of the deal

No amendments or cancellations can be made without everyone’s agreement, and payment is only processed once exact terms and conditions are met. This means exporters can be confident they’ll receive payment, and importers have a stronger buying position.

More negotiating power

Because importers are offering a secure transaction, they can ask the exporter to cover more of the trade costs. This is particularly valuable when dealing with new, unknown suppliers.

Key benefits

  • A strong bargaining tool for importers, creating more opportunity to negotiate
  • Clear terms
  • Currency flexibility
  • More control and enhanced credit position
  • Payments can be made in any approved freely-traded currency
  • Improved cash flow
  • Leads to more competitive deals
  • Safe and flexible.

Talk to us about trade finance

If you have any questions or want to discuss your trade finance needs, call your local team.

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