Letters of Credit

Letters of Credit – An Introduction (UCP 600 Edition)
Webpage version or pdf version (214KB PDF Icon)

This Briefing explains what is a Letter of Credit (L/C), commonly referred to by the Banks and other financial institutions as a Documentary Credit. Also it tells you what types of L/C are available and the internationally agreed that govern its operation.

Letters of Credit – Best Practice (UCP 600 Edition)
Webpage version or pdf version (307KB PDF Icon)

This Briefing aims to give you a simple, easy to read and understand best practice guide for the operation of a Letter of Credit. Topics covered in this Briefing include Negotiation, Checking the L/C on receipt, documentation requirements and, in the event of a worse case situation, what to do if a L/C is rejected on first presentation by the Bank.

Letters of Credit – Checklist for Exporters (UCP 600 Edition)
Webpage version or pdf version (306KB PDF Icon)

This checklist is intended primarily, but not only, for use in export sales and shipping departments. It should be of regular assistance to those involved in the financial and credit management sides and to production and supply. Working through the checkpoints set out in the various sections will help reduce discrepancies; associated unplanned costs; and the risk of losing the whole basis of secured payment for which the credit was established in the first place.

Letters of Credit – Checklist for Importers (UCP 600 Edition)
Webpage version or pdf version (345KB PDF Icon)

This checklist is intended for both UK importers and also to be sent by UK exporters to their overseas buyers as part of their overall ‘customer relations’. It details the recommended procedures to be followed, with item-by-item reference to completing the application form provided by the importer’s bank. A simple specimen form is included at the end of this guide specifically as a guide to those who are new to trading on a letter of credit basis. This emphasises the importance of getting the letter of credit correct from the beginning.

Letters of Credit – Checklist for Export Sales Executives (UCP 600 Edition)
Webpage version or pdf version (249KB PDF Icon)

This checklist goes one step before the application by the importer, to help establish a credit with the customer that is clearly understood. It also refers to other, less secure methods of payment, and, at the same time recognises the representational role of the sales executive for the company when away from base.

Letters of Credit opened under UCP 500 will still be subject to those rules. SITPRO’s guides related to UCP 500 are still available: