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

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

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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