Export Letters of Credit

More Benefits

• Separate – the Letter of Credit is paid upon presentation of compliant documents. Payment is independent from the commercial contract
• Finance – buyers overseas often need extended credit terms. Exporters may be able to offer such terms and then use acceptances under the Letter of Credit to assist their cash flow
• Confirmation – in some cases the Letter of Credit can be co-guaranteed by a bank in the UK by means of a confirmation being added. This transfers the risk from the buyer’s bank and the buyer’s country to a known bank in the UK
• Personal attention – dedicated local Agribusiness Partner can make fast decisions

Further Features

• Letters of Credit are irrevocable unless otherwise stated
• Letters of Credit are governed by internationally accepted rules and regulations known as Uniform Customs and Practice for Documentary Credits (UCP)
• All Letters of Credit must be checked thoroughly as they have dates that must be met, and terms and conditions that must be complied with – otherwise the protection offered ceases to exist

Complementary Solutions

• Documentary Collections
• Foreign Exchange

Important Information

• Costs
• Standard charges can be found in the interest rates and charges section. Other fees may be individually negotiated – speak to your local Agribusiness Partner for more details
• Terms and conditions
• Letters of Credit are issued subject to the Uniforms Customs & Practice for Documentary Credits (UCP). This set of rules is produced by the International Chamber of Commerce
• Prior to an Export Letter of Credit being issued by Clydesdale Bank you must have arranged a suitable facility and have signed the appropriate documentation. You may be asked to provide collateral
• Full terms and conditions available on request

In the event of non payment, breach of covenant, or non compliance with terms and conditions, we may proceed to make a call on, or realise any security pledged in support of the borrowing.

CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.

*This service may be temporarily unavailable during periods of routine maintenance.