Trade services

Documentary letters of credit are internationally recognised instruments that help ensure the creditworthiness and payment of the overseas parties you're trading with.

• As an exporter (seller), you can benefit from assurance that payment will be made to you by a bank and retain control over your goods until payment is assured.
• As an importer (buyer), you can ensure that payment by you to your supplier will only be made if your supplier complies with the terms set out in the documentary letter of credit.
• As an exporter (seller), you can look at the option of raising finance against the documentary letter of credit issued in your favour, as well as mitigate the payment risks associated with selling to buyers overseas.
• You may feel more confident when trading in new markets and/or with new suppliers.
• A documentary letter of credit is subject to internationally agreed banking rules.

When trading internationally documentary collections can help manage the trade transaction by retaining control of the goods and the timing of payment. If you are importing, the bank will release documents to you upon your authority to pay or your acceptance of a bill of exchange payable in the future. If you are exporting, the bank will control release of documentation to the buyer against either payment by the buyer or their promise to pay where you have agreed this.

• If importing, you will be able to examine the documents before payment is made, or examine the goods before payment is made where payment has been promised at a future date.
• If exporting, you will be able to retain an element of control over the release of your goods against the buyers payment or promise to pay.
• Use documentary collections to reflect a growing relationship of trust that may allow for improved terms in your trading business, e.g. better prices or longer credit terms.
• Benefit from a more controlled method of payment than dealing on an open account basis- the bank collects payment against bills of exchange and/or documents after goods are shipped.

We can provide a wide range of guarantees to support your international trading activities. Generally this will offer your trading partner the comfort of the bank’s commitment to pay a sum of money to them in specified situations.

• For sellers (exporters), guarantees can allow you to bid for contracts that you might not have otherwise considered.
• For sellers (exporters), guarantees can help you to manage your cash flow by enabling the release of cash from your buyers at an earlier stage in your contract.
• For buyers (importers), guarantees can offer your suppliers security for payments to be made to them. This may allow you to improve the terms of your contract with them.

When your business is growing rapidly and becoming more international, your financing needs will increase and you will face new risks. You may want to finance your growth and manage these new risks. We provide a range of trade financing facilities to help you to finance your growth when trading internationally.

• Gain access to finance tailored to your trade pattern.
• Turn sales into cash more effectively. As sales grow, your finance needs will change.
• Improved cash flow may allow you to win further sales by offering more generous credit terms.
• Tailor your finance to manage the risks faced when trading internationally.