Documentary Letters of Credit

Whether you’re importing or exporting, Letters of Credit can help you cover your business risks.

Import Letters of Credit allow you to pay for goods from overseas suppliers and cover your trading risks. They offer the following benefits:

• Greater control over the terms of your transaction.
  As payment will not be made until the exact terms you’ve specified have been met. And because they’re irrevocable, no amendments or cancellations can be made without your agreement.
• More opportunity to negotiate the terms of trade.
  This is particularly valuable when you’re dealing with new suppliers. And by giving you more bargaining power, Letters of Credit can help you negotiate for more costs to be met by your supplier.
• Longer credit periods.
  If you’ve agreed a term Letter of Credit, we can provide non-recourse finance to your supplier as soon as they supply appropriate documentation, giving you longer credit terms while enabling your supplier to receive immediate payment.
• The ability to make payments for any amount and in any freely traded currency.
• Enhanced trading status.
  Letters of Credit are only issued to organisations with a strong credit rating, which can increase your competitive position in the eyes of your suppliers.
• Easy access to additional funds.
  We can also offer import letters of credit finance, which come with an overdraft to give you flexible credit as and when you need it.

Export Letters of Credit offer you a guaranteed source of payment for the goods you sell overseas. They can give you the ability to:

• Improve your cash flow
• Compete more effectively by offering better credit terms to your overseas buyers
• Trade with greater security
• Collect payments in any freely traded currency