Import Letters of Credit

More Benefits

• Security – the buyer will only pay if the exporter complies fully with the terms
• Finance – suppliers can often use your Letter of Credit to raise pre-shipment finance
• Priority – you may find that goods paid for under a Letter of Credit receive priority over goods paid for by other methods
• Control – as the applicant you can dictate with the Letter of Credit the terms and conditions under which your bank will make payment
• Flexibility – Letters of Credit are very flexible and can be used in lots of different situations. They can be made to match specific business needs
• Electronic applications – you can apply for Letters of Credit from your own computer using the electronic bank system Clydesdale Bank International Trade Connect®*. Speak to your local Agribusiness Partner for more details

Further Features

• Letters of Credit are irrevocable unless otherwise stated
• Letters of Credit are governed by internationally accepted rules and regulations known as Uniform Customs and Practice for Documentary Credits (UCP)
• The issuing bank deals in documents, not goods. If the documents are presented exactly in compliance with the terms and conditions of the Letter of Credit, the bank will make payment
• Ensure you know who is paying the charges under the Letter of Credit
• The Letter of Credit may need to be issued some time before the goods are shipped

Complementary Solutions

• Documentary Collections
• Foreign Exchange

Important Information

• Costs
• Standard charges can be found in the interest rates and charges section. Other fees may be individually negotiated – speak to your local Agribusiness Partner for more details
• Letters of Credit are issued subject to the Uniforms, Customs & Practice Documentary Credits (UCP). This set of rules is produced by the International Chamber of Commerce
• Prior to an Import Letter of Credit being issued by Clydesdale Bank you must have arranged a suitable facility and have signed the appropriate documentation. You may be asked to provide collateral
• Terms and Conditions
• Full terms and conditions are available on request

In the event of non payment, breach of covenant, or non compliance with terms and conditions, we may proceed to make a call on, or realise any security pledged in support of the borrowing.

CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.

*This service may be temporarily unavailable during periods of routine maintenance.