In the current global financial climate, many internationally trading companies are turning to Letters of Credit as a means of securing payment from buyers in new or difficult markets.

We are hearing from an increasing number of clients who are being subjected to sudden hikes in the level of Letter of Credit charges being deducted by UK based advising or confirming banks.

When negotiating terms with buyers it is always advisable to factor bank charges into your pricing. To help you anticipate these costs, we have drawn up the following list of typical transaction fees taken by the major UK banks:

Let's paint a brief picture....

An engineering company has received a letter of credit in their favour for a high value piece of machinery.

The credit  has been issued by a little-known bank in an emerging market, but has been confirmed by a first class European bank.