Import Letters of Credit
Your overseas supplier may require you to provide an irrevocable letter of credit in their favour to secure a trade transaction. Our network of branches and correspondent banks enables us issue Letters of Credit to beneficiaries in virtually all countries worldwide and in all freely convertible currencies.

Subject to fulfilment of all our requirements, our policy is to ensure the beneficiary's bankers receive our Letters of credit within 24 hours of our receipt of your application.

Revolving Letters of Credit
Revolving letters of credit are useful for buyers and sellers who have a long standing trading relationship. They involve our conditional undertaking to reinstate a letter of credit either after the occurrence of a specific event or after a specific time period has lapsed. Depending on your needs, Barclays will undertake to reinstate these instruments automatically and without the requirement of any further amendment from you. The number of times within which this can take place will be agreed upon and specified in the documentary credit.

Standby Letters of Credit
Whereas payments under regular letters of credit are triggered by the performance of the exporter under a specified trade contract, payments under Standby letters of credit are triggered by the default of the importer under a specific trade contract. Standby Letters of credit are irrevocable and payable on demand.

Upon your request as an importer, Barclays can provide this form of conditional undertaking on your behalf to the beneficiary. Should you fail to make settlement, we will make settlement on your behalf upon the presentation of specific documents by the beneficiary required under the credit.

Import Letter of credit Refinancing
This is usually applicable in instances where certain unfavourable market conditions exist on the due payment date and for one reason or another, the applicant is not willing to make settlement. We can arrange to make settlement of both sight and usance import letters of credit on your behalf and refinance locally up to 180 days after payment date depending on your requirements. This can be applied in various instances and ultimately provides you with flexibility to manage your cash-flows.

Import Documentary Collections
Under documentary collections, your overseas suppliers present appropriate documentation to their bankers which are then forwarded to us to facilitate collection on their behalf. We ensure that you are advised promptly and that their instructions are carried out exactly as per their requirements. Different forms of financing can be arranged based on the presentation of appropriate documentation.

Avalisation of Bills of exchange
Exporters may require a third party, usually a bank, to guarantee payment of a bill of exchange drawn on an importer under a trade contract. This action is known as an "avalisation" and can be provided on behalf of the exporter upon request. By endorsing the bill on the back, the bank commits itself unconditionally to pay should the drawee default.

An "avalised" bill substitutes the bank's risk for the importers risk thus providing the exporter with assurance that payment will be met. This bill can subsequently be discounted or used to negotiate better credit terms thus can enhance the trading relationship with the importer.