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Security may be required. Product fees may apply. Over 18s only. Subject to status, business use only. Any property or asset used as security may be repossessed or forfeited if you do not keep up repayments on any debt secured on it.
Why use Letters 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...
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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.
Secure finance
Letters of credit could increase your chances of securing pre-shipping finance.
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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.
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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.
Bonds & guarantees, and standby letters of credit, provide companies with additional protection in respect of their business or customers, performance or financial obligations. We can issue guarantees on your behalf or receive and validate guarantees issued by other banks in your favour.
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Documentary collections provide a secure way to make and receive payments during international trade.
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Trade Loans tailor loans to a specific contract(s) and cover the funding gap between you paying your suppliers and being paid by your customer. They allow you to repay the loan when your customer pays you and are available to businesses with a turnover of over £2m.
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Managing risk
Help protect against the impact of exchange rate fluctuations and the risk of not being paid
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Max Trad
Our secure online platform lets you manage your international trade transactions from anywhere, 24 hours a day
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