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Trade Finance

Solutions to suit your international banking needs

Importing and exporting

Doing business abroad can be as simple as ordering your products from an overseas supplier or taking online orders from customers across borders.

Many small companies across the island of Ireland are doing these things daily. You might not call it exporting or importing, but it’s probably adding significant value to your business and providing access to a bigger customer base.

Broadening your business horizons may benefit your business, but it can sometimes put a strain on your cashflow and expose your business to new risks.

We can help.

We have three types of trade finance

Thanks to our expertise in global trade finance, we could help you by improving your companies cashflow, and gaining control over your imports and exports. Our trade finance products aim to ensure any risks are mitigated and provide you and your trading partners with reassurance.

Letters of credit

Reduce trade risk. Import Letters of Credit are our commitment to pay your supplier on your behalf. Or for exporters guarantee of payment before you commit to sending goods.

Import Letters of Credit are subject to credit approval.

When importing and exporting a Documentary Letter of Credit (LC) is one of the most secure methods of settlement. They are irrevocable and cannot be cancelled unless all parties agree

Import Letter of Credit:

  • Import Letters of Credit are our commitment to pay your supplier on your behalf. Or for exporters guarantee of payment before you commit to sending goods.
  • Import Letters of Credit are a conditional bank guarantee of payment
  • Payment is made upon Ulster Bank's receipt of the financial and commercial documentation (Bills of Lading, Invoices, Packing list etc) subject to the terms and conditions of the L/C having been met.

Export Letter of Credit

  • A conditional bank guarantee of payment received on your behalf from another bank.
  • If you are the seller, it guarantees receipt of payment by the buyers’ bank upon representation of the financial   and commercial documentation (as above) subject to the terms and conditions of the L/C being met.

Documentary Collections

Cover your business against performance risk. Negotiate new payment terms with suppliers, offering better security for both sides.

Does your business need to make and receive overseas payments through the international banking system? Collections could be the answer. They provide a universally recognised method for settling overseas trade debt. Collections could improve your cashflow, add security and are cost-efficient and easy to use.

Import collections

  • Consists of a financial instrument (i.e. Bill of Exchange) together with other commercial documentation (i.e. Bills of Lading, Invoices, Packing List etc) needed to take delivery
  • Documents are released in exchange for immediate payment or endorsement of the bill of exchange as an undertaking to pay at a future agreed date

Export collections

  • Consists of a financial instrument (i.e. Bill of Exchange) together with other commercial documentation (i.e. Bills of Lading, Invoices, Packing List etc) needed by buyers to take delivery
  • Documents are released to the buyer in exchange for immediate payment or endorsement of the bill of exchange as a promise to pay at a future agreed date

Bonds, Guarantees & Standby Letters of Credit

Give your trading partners and customers confidence. Bonds and guarantees give your international suppliers more reassurance, as long as they meet the terms of the sales contract.

Bonds, Guarantees and Standby L/C’s are subject to credit approval.

Give your trading partners and customers confidence. Bonds, guarantees and Standby Letters of Credit give buyers the security of a financial guarantee in the event of the seller's failure to meet its contractual obligation. If the seller fails to deliver the goods or services as described in the contract with the buyer, the latter can 'call' the Bond, Guarantee or Standby Letter of Credit to receive financial compensation from the bank.

Types of Guarantees:

  • Bid or Tender Bonds - Issued by the supplier in support of a contractual tender.
  • Performance Bond - Issued by the supplier in order to support their performance obligations under the commercial contract.
  • Advance Payment and Progress Payment Guarantees - Issued by the supplier when the buyer has provided a down payment for the supply of goods or services.
  • Payment - The supplier receives a Guarantee from the buyer to support their financial obligations under a commercial contract.
  • Customs Bonds / Custom Duty Deferment Guarantee / H.M. Customs&Excise Guarantee - This allows a company to defer payment of duty or tax.
  • Standby Letter of Credit - Covering a buyer's financial obligation in relation to the purchase of goods and services in Northern America.

Frequently asked questions

4 reasons to choose Ulster Bank

We’re open for ROI businesses

We're helping so many businesses across  the Republic of Ireland Why not be part of the success?

We’re experts in most fields

We have customers in most sectors, so you can be confident with our expertise and support.

We offer a support network

You'll receive your own Relationship Manager (turnover and eligibility criteria apply).

Our app makes it easier for you

With fantastic features, our app can do the heavy lifting, so you can focus on your business. (eligibility criteria applies).

MaxTrad

Our secure online platform lets you manage your international trade transactions from anywhere, 24 hours a day.

Get in touch today

Our International Banking team are waiting to hear from you. Our online enquiry form takes two minutes to complete and ensure we get the right person to contact you.

Something else we can help you with?