Letter of Credit

What is a Letter of Credit?

Letters of credit help businesses to trade internationally with confidence by providing important guarantees, whether you’re the business who’s importing or exporting the goods.

When exporting using a letter of credit, you have a bank guarantee that you will be paid in the event your customer is unable to settle the debt. Importers, meanwhile, benefit from knowing they will receive the goods ordered before you have to pay.

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What are the benefits of a letter of credit?

  1. Exporters gain peace of mind that they will be paid for their service, even if their customer goes out of business
  2. Importers know they won’t have to pay if the supplier fails to fulfil the order on time, and could negotiate a better price
  3. Letters of credit enable businesses to trade in confidence with businesses in overseas markets they may not be familiar with
  4. A bank letter of credit is an internationally recognised, secure method of settlement
  5. They can also help the exporter to secure an invoice finance facility, to bridge the cash flow gap arising from trading on credit terms

How can I secure a letter of credit?

Whether your supplier has asked for you to set up a letter of credit or you would like your customer to do so, Hilton-Baird Financial Solutions can help guide you through the process.

To find out more about how we can help, call us on 0800 9774833 or email info@hiltonbaird.co.uk.

I was delighted with the quick turnaround. It was exactly what I wanted and I was extremely impressed with the service I received from Hilton-Baird that enabled this.

Heulwen Holt, Managing Director, Ceredigion Couriers

Funders we work with

  • Hitachi Capital Invoice Finance
  • Partnership Invoice Finance
  • Shawbrook Business Credit
  • Nucleus Commercial Finance
  • Barclays
  • Platform Black
  • Factor 21
  • Woodsford Tradebridge
  • Santander Corporate & Commercial
  • Trade Finance Partners
  • Metro Bank SME Finance
  • Positive Cashflow Finance
  • GE Capital
  • Invoice Cycle
  • Calverton Finance
  • PNC Business Credit
  • Assetz Capital
  • Ultimate Finance Group
  • Everline
  • Creative Capital
  • Skipton Business Finance
  • iwoca
  • Secure Trust Bank
  • Royal Bank of Scotland
  • Davenham Asset Finance
  • Working Capital Partners
  • 1pm
  • Lloyds Bank Commercial Finance
  • Bibby Financial Services
  • Aldermore Invoice Finance
  • GapCap Cashflow Finance
  • Roma Finance
  • Catalyst Finance
  • Close Brothers Invoice Finance
  • Regency Factors
  • ABN AMRO Commercial Finance
  • Ashley Commercial Finance
  • Outsauce
  • Market Invoice
  • Innovation Finance
  • IGF Invoice Finance
  • Davenham Trade Finance
  • Leumi ABL
  • Asset Advantage
  • Pulse Cashflow Finance
  • Team Factors

Authorised and regulated by the Financial Conduct Authority (FCA number 730445)
We are a credit broker and not a lender and offer credit facilities from a panel of lenders

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