COMMERCIAL
LETTER OF CREDIT
Letters of Credit
LETTER OF BANK GUARANTEE
Through Hamilton Reserve Bank
Fast and reliable execution
Our Role: Hamilton Reserve Bank can act as a multicurrency LC issuing bank or advising bank. We act on all types of letters of credit.
LC Issuance: For the Bank to issue an LC of any type, an applicant/client must have liquid funds already on deposit with the Bank. Depending on the value of the LC and the complexity involved, the LC fees vary, starting from 1.5% of the value of the LC or fund guarantee.
LC Processing Time: 1 day to 5 business days upon Bank approval
LC Advising: The Bank will advise clients immediately upon arrival
LC Transmission: Via SWIFT and can be in any currency
Issuing or Advising Bank: Hamilton Reserve Bank
SWIFT Code: NIBTKNNE
Letter of Bank Guarantee: Via authenticated SWIFT messages and/or certified formal bank letters
Commercial Letters of Credit
A commercial Letter of Credit is a widely used financial instrument that bridges the gap between buyers and sellers with the neutrality and guarantee of a trusted Bank. This bank instrument mitigates credit risk and is an essential vehicle for payment for trade financing. It is particularly suitable for business relationships where two parties must establish trust, and now through a bank.
Export Letters of Credit
Exporters that understand the importance of strategic partnerships recognize Hamilton Reserve Bank specialists as an essential resource of banking assistance. The benefits of an export Letter of Credit are:
- Exporters are assured of receiving payment if compliant with all terms and conditions of the Letter of Credit
- Exporter relies upon the creditworthiness of the issuing bank rather than that of the importer
- Term Letters of Credit can be discounted upon acceptance of drafts, thereby expediting cash flow
- Exporters may offer extended payment terms through a Letter of Credit
Import Letters of Credit
A Letter of Credit serves as both a payment vehicle to be utilized by exporters as well as an important financing tool for importers.
Hamilton Reserve Bank specialists are a vital source of information when efficiently structuring import purchases. The benefits of an Import Letter of Credit are:
- Importers are assured that all terms and conditions of the Letter of Credit are met before payment is made
- Importers may be able to negotiate more favorable trade terms with the exporter through a Letter of Credit
