Letter of Credit

What is a Letter of Credit?

A letter of credit is a letter from a bank that provides important guarantees. It can help businesses to trade internationally, whether you’re the business who’s importing or exporting the goods.

For businesses exporting, the risk is that you will send goods but never receive payment from the customer. A letter of credit provides you with a bank guarantee that you will be paid in the event your customer is unable to settle the debt.

Importers, meanwhile, may fear that they will send payment for goods they never receive. A letter of credit means they benefit from knowing they will receive the goods ordered before having to pay.

Letters of credit can typically be provided as part of a wider finance facility. To discuss your funding requirements with our team, please call 0800 9774833 or request a call back at a convenient time.

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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
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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, businesses typically have a few options available to them and they are usually provided as part of a wider facility.

As an experienced commercial finance broker, we’ll explore your funding requirements and introduce the most appropriate providers and facilities based on your specific requirements. We can also help you with other methods of trade finance, designed to reduce the risks of working with international suppliers and clients. 

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

Some of the funders we work with

  • 4Syte
  • Bibby Financial Services
  • Investec
  • Team Factors
  • Royal Bank of Scotland
  • Blazehill Capital
  • IGF Invoice Finance
  • InvoCap
  • Lloyds Bank Commercial Finance
  • Nationwide Finance
  • Tradeplus24
  • Aldermore Invoice Finance
  • Davenham Asset Finance
  • iwoca
  • Sonovate
  • Secure Trust Bank
  • Roma Finance
  • Selina Finance
  • Clear Factor
  • MaxCap
  • Pulse Cashflow Finance
  • inFund
  • Merchant Money
  • Giant
  • Close Brothers Invoice Finance
  • Shawbrook Business Credit
  • ABN AMRO Commercial Finance
  • Regency Factors
  • Optimum Finance
  • FIBR Tech Limited
  • Metro Bank SME Finance
  • Santander Corporate & Commercial
  • Creative Capital
  • Partnership Invoice Finance
  • Woodsford Tradebridge
  • Leumi ABL
  • Castlebridge
  • Nucleus Commercial Finance
  • Peak Cashflow
  • Ultimate Finance Group
  • Praetura Invoice Finance
  • Davenham Trade Finance
  • Barclays
  • Trade Finance Partners
  • Boost Capital
  • Haydock Finance Ltd
  • Asset Advantage
  • Berkeley Trade Finance Ltd
  • Skipton Business Finance
  • MarketFinance
  • Accelerated Payments
  • PNC Business Credit
  • Time Finance

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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