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Letters of Credit

Providing support to businesses of any size or complexity, Letters of Credit can help cover your trading risks by allowing you to protect against defaults on payments from overseas and guarantee your own payments abroad.

Is it right for you?

  • You are 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, you are looking for security of payment
  • As an importer, you wish to strengthen your credit worthiness

How it supports your business

  • Gives you the reassurance of a secure, globally recognised method of settling overseas trade
  • Offers flexibility as we can match your Letter of Credit to your business needs and payment can be made for any amount and in any freely traded currency
  • Allows you to strengthen your trading relationship by offering better credit terms to overseas buyers if you are exporting goods
  • Enables you to negotiate improved credit terms if you are importing goods, thereby improving your cashflow
  • Your Letters of Credit will be subject to the International Chamber of Commerce’s rules for Documentary Credits providing you with reassurance that worldwide standards apply to you and your trading partner

Export Letters of Credit: Collapsed

Export Letters of Credit are conditional payment undertakings issued by your buyer’s bank on their behalf. They give you certainty that you will receive payment for the goods you’re exporting providing you meet the terms of the Letter of Credit. If you ask us to confirm the 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 you to more effectively manage your cashflow by securing a known payment date, currency and amount.

Import Letters of Credit: Collapsed

Import Letters of Credit are conditional payment undertakings issued by us to your supplier on your behalf. They secure payment for your 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 you more control, which can be a particular advantage when buying from new suppliers.

Import Letters of Credit can also enhance your trading status by supporting your credit status. They can be valuable for negotiating terms such as a longer credit period or lower prices.

Important information

The products referred to in this webpage are subject to separate terms and conditions.

Talk to us

Find out more about our Letters of Credit by talking to your Relationship Director.

New to Barclays? Our experienced UK-based team can listen to your business need, offer assistance on-the-spot or put you in touch with the right specialist at Barclays. Call us on:

0800 015 4242*

Alternatively we can call you back or you can email us with your query.

Related products

Bonds, Guarantees and Indemnities

Demonstrate your financial credibility and tender competitively for business with bonds and guarantees issued by Barclays.

LC Discounting

Improve your cashflow by receiving money due to you under a Letter of Credit.

Trade Collections

Receive and make payments efficiently and securely for your exports and imports.

Trade Finance

Improve your cashflow and your trading potential both in the UK and overseas.

How can we help?

To discuss switching to Corporate Banking at Barclays, call us on: 0800 015 4242*