Export letters of credit
Giving you the confidence to trade in new markets
As an exporter operating in new markets, you’ll often need added assurance that your overseas buyer has the capacity to pay - an export letter of credit gives you that reassurance. It effectively substitutes your overseas customer’s credit rating with that of your customer’s bank. It is also possible to further substitute your Bank’s risk by confirming the letter of credit with that of your customer’s bank.
Benefits
- A safety net- helps you trade in markets where other forms of payment may be deemed too risky
- Flexibility- they can be designed to match your specific business needs
- Peace of mind- you know that payment will be made according to the terms of the letter of credit
- Reduces production risks- you can start production since you know you will be paid for the goods
- Financing security- provides additional security for your bank as a basis for structuring pre-shipment financing
- Accelerate cash flow- deferred payment letters of credit can often be discounted with your Bank
- Efficient and secure- Export letters of credit and amendments can be advised to you using our online trade channel
