Why use us for
Letters of Credit?

  • The only Chamber of Commerce in the UK that provides a comprehensive Letter of Credit Service
  • 15 years experience.
  • 98% of our presented Letters of Credit are accepted first time compared with only 30% when exporters submit their own.
  • Benefits to you:
    - Save time & money
    - Secure payments
    - Avoid bad debts
    - Increased profit 

Contact Us

For more information on Payments for Export or any exporting activity call 01275 370 716.

 

Payment for Exports

Letters of Credit

A documentary Letter of Credit is an undertaking issued by a bank, on behalf of the buyer, to the seller, to pay for goods and or services, provided the seller presents documents which comply fully with the terms and conditions of the documentary credit.

There are different types of Letter of Credit including Confirmed Irrevocable Letter of Credit, Irrevocable Letter of Credit, Transferable Letter of Credit, Back to Back Letter of Credit, Standby Letter of Credit.

You should be aware that whilst a Letter of Credit offers considerable security for the exporter there may be substantial bank charges involved in being paid by this method and therefore any initial quotation should take these charges into consideration.

How we can help

Preparation of all documents called for by a Letter of Credit requires meticulous care and attention to detail. Staff undertaking Letters of Credit need knowledge of both the shipping world and the banking industry. They also need ongoing update training.

We will take care of your Letter of Credit from the outset. This includes:

  • creating all your paperwork for you
  • arranging transportation or liaising with your freight forwarder
  • liaising with any other third parties such as inspection agents
  • checking that all terms can be complied with and advising any amendments that we see necessary
  • submiting all necessary documents to the bank on your behalf.

Cash in Advance

This requires trust by your buyer that you are going to despatch the correct goods in good order and on time. However also consider whether your buyer could get better payment terms from your competitors. Insisting on cash in advance may lose you customers.

Documentary Collection

If goods are despatched sea freight this method of payment could give you a degree of security whilst also giving the buyer the assurance that the goods have been shipped. All documents (Bills of Lading, Invoice, Packing List, Bill of Exchange are sent to the buyers bank via a UK bank. The overseas bank cannot release the documents until the buyer has paid or, in the case of a termed Bill of Exchange, accepted the Bill. This means that  your customer cannot get hold of the goods without paying for them. Of course if for whatever reason the buyer never goes to the bank to get the documents you will not get your money. The buyer will not get the goods so you now have the opportunity to pay to have them returned or to find an alternative buyer.

We can help you with all your documentation and submit them to the bank for forwarding on a collection basis.

Please contact us on 01275 370 716 for more details.

Open account

You despatch the goods and invoice your customer. This is the riskiest option for the exporter.