Unsecured SME Finance
Providing support to businesses of any size or complexity, Letters of Credit can help cover your trading risks by allowing protection against defaults on payments from overseas and guarantee your client’s payments abroad.
Is it right for you?
- Your client is entering into new relationships with buyers or suppliers in emerging markets and are looking to trade safely
- Offers exporters non-recourse finance as soon as compliant documentation is presented with a ‘term’ Letter of Credit
- Letters of Credit often act as ‘gateways’ to a whole range of other international products and services, such as foreign exchange products and risk mitigation, where income benefits can be extensive
- As an exporter, your client is looking for security of payment
- As an importer, your client wish to strengthen their credit worthiness
How it supports your business
- Gives the reassurance of a secure, globally recognised method of settling overseas trade
- Offers flexibility as your Letter of Credit can be match to client’s business needs and payment can be made for any amount and in any freely traded currency
- Allows to strengthen client’s trading relationship by offering better credit terms to overseas buyers if you are exporting goods
- Enables to negotiate improved credit terms if your client’s are importing goods, thereby improving cashflow
Export Letter of Credit
Export Letters of Credit are conditional payment undertakings issued by the client’s buyer’s bank on their behalf. They give certainty that your client will receive payment for the goods they are exporting providing your client’s to meet the terms of the Letter of Credit. With Letter of Credit, you will have protection against payment default by the buyer’s bank.
In addition to being a secure and fast way to receive payment, Export Letters of Credit enable more effectively manage cash flow by securing a known payment date, currency and amount.
Import Letter of Credit
Import Letters of Credit are conditional payment undertakings issued by the bank to your client’s supplier on their behalf. They secure payment for your client’s supplier providing they meet the terms of the Letter of Credit, for example presentation of documents such as a bill of exchange, Invoice, Bill of Lading or an Airway Bill. This gives more control, which can be a particular advantage when buying from new suppliers.
Import Letters of Credit can also enhance trading status by supporting your client’s credit status. They can be valuable for negotiating terms such as a longer credit period or lower prices.