Import letters of credit
A conditional guarantee of payment to your supplier
An import letter of credit, issued by your Bank, conditionally guarantees payment to your international supplier, provided all of the conditions specified are complied with. It is one of the most secure methods of settlement for imports and is internationally well recognised.
Benefits
- Trading confidence– you know that the goods have been shipped and will be delivered at an agreed time and place
- Documentary evidence– that the goods match the agreed specification in the letter of credit. You may also require an inspection certificate to give further comfort that the goods match your order
- Limit financial exposure– payment will only be made if the exporter complies fully with the terms of the Letter of Credit
- New supply source penetration– lets you trade safely in new markets with unfamiliar suppliers
- Negotiating power– greater ability to negotiate a discount for the goods as payment to the exporter is secure
- Improved credit position– your suppliers can easily obtain pre-shipment finance from their banks and you can obtain import financing to improve your cash flow
- Efficient and secure– Letter of Credit applications and amendments can be initiated using our online trade channel
