Trade Finance

If you have a Relationship Manager, they should have confirmed if you have a Credit line in place with us to support your Import Letters of Credit, Bonds, Guarantees & Standby Letters of Credit applications. If you are a new customer, give us a call on 0345 303 0077. 

A credit line is required for Import Letters of Credit and Bonds Guarantees & Standby Letters of Credit. Provided you have a credit line in place for either of those two products, you can have more than one Trade Finance product at one time.

Letters of Credit, Documentary Collections, also known as Import Letters of Credit and Import Collections.

Letters of Credit, Documentary Collections also known as Export Letters of Credit and Export Collections. 

The common types of trade finance are:

• Bonds and Guarantees
• Standby Letters of Credit
• Import and Export Letters of Credit
• Documentary Collections
• Trade Loans

Trade finance is an umbrella term for financial products that companies can use to support and facilitate international and domestic trade. The function of trade finance is to introduce a third party to transactions to remove the payment risk and supply risk, by using the shipment or trade of goods as collateral for financing. It can be an important tool in boosting efficiency of operations and improving cash flow.

A good example of trade is the importing and exporting of goods both internationally and domestically. Trade Finance products allow short term funding to cover the gap between shipment and payment of goods.