Letters of Credit

A Documentary Letter of Credit is a secure method of payment in international trade, which is used to guarantee payment for exports and to provide financial protection to the buyer and seller.

LCCI has introduced a Letter of Credit service to ensure that any potential risks associated with Letters of Credit for your business are minimised. 

About Letters of Credit

Why do I need a Letter of Credit?

An exporter will usually choose to use this method of payment when selling goods to high-risk clients or markets. It is reported that more than 75% of documents are rejected on first presentations to banks. There can be multiple reasons for this:

  • Late presentation of documents to the bank
  • Delays in payment
  • Discrepant documents and associated fees
  • Too much time spent dealing with documentation
  • Inconsistent service/information
  • Ongoing training needs for staff in LC compliance

LCCI' s Letter of Credit service includes

  • Checking of documentation to ensure that it complies with the terms of the credit
  • Raising of documents such as invoices and packing lists, liaising with exporter and shipper every step of the way
  • Downloading of LC directly from selected banks
  • Arranging authentication and legalisation of documents if required, using our own in-house documentation service, including online certification
  • Presenting documents (electronically where possible) to the bank and ensuring that payment has been made.

How much does a Letter of Credit cost?

Our prices start from £550 + VAT (LCCI Premier Plus Members); however the final price of your Letter of Credit will depend of different factors:

  • The complexity of the shipment
  • Number of presentations (i.e. part shipments, stage payments)
  • If requierements for other trade documents (i.e. Certificates of Origin)
  • The service level you require (Standard or Premium).

Interested in the service? Register today

Complete this online form with your details and copy of your Letter of Credit draft to get a quote. Once your form is submitted we will review the requirements of your Letter of Credit, and our team will get in touch to give you a quote for all the services and documentation required.

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