Letters of Credit

Secure solutions for making and receiving payments

When you need peace of mind, a Letter of Credit (L/C) is one of most secure methods of settlement. It is the trusted guarantee you need to trade overseas.

We issue Import L/Cs on behalf of importers (or buyers), guaranteeing payment to exporters (or sellers). Payment is made as long as the documents comply with the terms and conditions of the credit.

An Export L/C is one that we have received from another bank. If you are the seller, it guarantees payment - again, as long as the documents comply with the terms and conditions of the credit.

Key benefits

• Secure, fast payment - other than payment in advance, L/Cs are the safest and fastest method of receiving payments
• Peace of mind - for the seller, L/Cs provide reassurance that they will get paid, provided their documents match the terms and conditions of the credit
• Opens new markets - L/Cs provide the safety net to trade in markets where open account trading may not be appropriate
• Customs and law - in some countries, law or tradition states trade must be supported by an L/C
• Worldwide standards - L/Cs are subject to the globally recognised International Chamber of Commerce, Uniform Customs and Practice (UCP 600 {ANCHOR POINT LINK}) for Documentary Credit guidelines
• Irrevocable - they cannot be revoked or amended without all parties agreeing to cancellation
• Electronic payments - L/Cs can be initiated electronically via your office PC by using RBS TradeFlow