Letters of Credit
Issued by a Bank on behalf of the importer (buyer) and conditionally guarantees payment to the exporter (seller) provided that the documentation submitted by the exporter complies with all the conditions specified.
An Import Letter of Credit is one issued on your behalf as the buyer. An Export Letter of Credit is one that the Bank has received from another bank in your favour as the seller.
Key features:
- Are subject to the globally recognised International Chamber of Commerce Uniform Customs and Practice for Letters of Credit
- Are normally irrevocable i.e. a definite undertaking which cannot be revoked without the agreement of all parties
- Can be initiated electronically via your office PC by using our Roytrade or RBS TradeFlow systems
Benefits:
- Can be the safest and fastest method of obtaining payment (other than payment in advance)
- Provide reassurance that the seller will get paid, provided that their documents are strictly in accordance with the terms and conditions of the Letter of Credit
- Allows the buyer to do business with trading partners who insist on Letters of Credit being in place before they will trade with you
- Allows the buyer and seller to enter into trading agreements where open account trading would not be suitable
Find out more
If you are a NatWest corporate customer, contact your Relationship Manager.
If your turnover is more than £1m and you are not a NatWest corporate customer, contact your nearest Corporate Banking Centre - find your nearest Commercial Banking Centre.
If your turnover is less than £1m, contact your local branch - visit your nearest branch.