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

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

Authorised and Regulated by the Financial Conduct Authority
Hilton-Baird is an Independent Introducing Agent (Broker) and not a Lender

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