Export letters of credit could enable you to trade in markets where other types of payment could be risky.
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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. Our Trade Services Terms and Conditions are available here.
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...
Expand into new markets
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.
Easy document management
Use MaxTrad to raise and manage your letter of credit business, allowing you to check the status of transactions through a secure online platform.
Get E-invoicing incorporated into your supply chain finance process and efficiently manage international trade payments 24/7 with MaxTrad.
Secure finance
Letters of credit could increase your chances of securing pre-shipping finance.
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.
Export Letters of Credit factsheet
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.
Import Letters of Credit factsheet
An Import Letter of Credit is a commitment given by us to pay your supplier on your behalf using a credit facility that you have pre-agreed. Payment is only made if we receive specified documents about the transaction from your supplier.
Request new Letter of Credit
To request a Letter of Credit you must be an existing NatWest Business Customer. Please contact us if you are not an existing business customer
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Amend existing Letter of Credit
Whether you need to amend the amount, expiry date or date of latest shipment, you can do so quickly and easily by filling out our amendment form below.
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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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Trade Finance Portal
Our new online platform lets you manage your domestic and international trade transactions effectively.
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