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Export letters of credit
Get paid for exported goods while covering your trade risks
Get a guarantee of payment before you commit to sending goods.
- Conditional payment guarantee issued by your buyer’s bank and advised to you by us
- Asking us to ‘confirm’ the letter gives protection against payment default by the overseas bank or country
- We can provide finance for the period between presentation of documents and the payment-due date
How export letters can help your business
A letter of credit lets you receive payment for your exported goods while covering your trade risks. Payment can be received for any amount and in any freely traded currency on delivery of compliant documents or on a fixed or determinable future date.
Improves your cashflow management
We can provide finance between document presentation and the payment date, or your suppliers may extend payment terms if you assign the proceeds of the letter to them.
Potential insurance savings
Meet the terms of the letter and there’s less need for you to take out credit insurance, while asking us to confirm the letter reduces the need for ‘political risk’ insurance.
How it works
Export letters of credit cover your trade risk by giving you a guarantee that you’ll be paid once you’ve met your part of the deal and provided the required documentation.
Your buyer’s bank provides this guarantee in advance, so you can start the arrangements for dispatching the goods with confidence. What’s more, it may be possible for you to use export letters of credit to manage your cashflow during the process.
We can also help you get the detailed financial information you need to reduce the risk of trading whether that’s with new buyers or current customers who want to increase their orders.
This product is available to clients of Barclays Bank UK PLC through referral to Barclays Bank PLC. Referred products will be owned and administered by Barclays Bank PLC. A portion of the revenue generated from referred products may be shared with Barclays UK PLC. Alternative service providers in the market may offer similar products.
Other services that may interest you
Export documentary collections
An easy way to collect payment for your exported goods
Stay in control of your goods once they’ve been dispatched – so you know you’ll get paid.
- Suitable for collecting payments of any amount and in any freely traded currency
- Payment is requested from your buyer on immediate presentation of the Collection1 or at a fixed or determinable future date
- Reduces the risk of losing title to the goods prior to receiving payment, or an agreement to pay, from your buyer
Guide to exporting
What you need to know about exporting
From reaching more customers to increasing your turnover, here are 10 reasons why exporting could benefit your business.
Everything you need to take your business worldwide
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