Our trade finance solutions help clients access international opportunities. Services are tailored to each case, supported by long experience and a network of partner banks and institutions — with the aim of competitive pricing and short execution times.
As clients grow, we align structures with their needs. Trade finance specialists help structure documentary flows, liquidity and advisory aspects of complex deals.
Letter of credit (documentary credit)
A letter of credit is a payment mechanism that adds security for exporter and importer: the exporter is paid when documents comply; the importer pays when those documents prove that agreed conditions are met.
Typically the importer’s bank issues the credit, the exporter is informed of required documents, goods move under agreed terms, banks examine documents and payment is released when terms are satisfied. Document accuracy matching the credit wording is essential.
Common distinctions
- Revocable vs irrevocable: irrevocable credits cannot be cancelled unilaterally by the issuer once issued, giving the beneficiary more certainty.
- Confirmed vs unconfirmed: confirmation adds a bank’s undertaking in the beneficiary’s market.
- Sight vs deferred: sight credits pay when documents are presented; deferred credits allow a payment period after presentation.
- Divisible vs indivisible: supports partial drawings as shipments progress.
- Transferable vs non-transferable: allows payment to a nominated third party when expressly stated.
Further detail on instruments, standby structures and documentary practice is available on request from our finance team.