Export Letter of Credit

Reduce the risk of non-payment and expedite cash flow with Export Letters of Credit.

Fifth Third Bank understands that companies are in business to sell goods and services, not to take credit and other risks—especially with uncertainties in dealing in foreign markets.

Export letters of credit can minimize the risk of nonpayment when selling overseas and, in many cases, can serve as collateral in support of export working capital lines. With a letter of credit, you, as the seller, no longer rely on the buyer’s promise to pay—you rely on the promise and ability of the buyer’s bank to pay when presented with a specified set of documents.

A letter of credit (often referred to as an export credit) does mitigate risk, but it is not an unconditional guarantee of payment to the seller or assurance to the buyer that the goods will be satisfactory. As long as the documents provided meet the letter of credit requirements, payment will be issued.

Improve and centralize the collection of proceeds from your export sales.

When it comes to Letters of Credit issued by foreign banks, Fifth Third Bank can act as the advising, confirming, negotiating, and discounting bank.

Authorizing Fifth Third Bank to confirm the letter of credit can further reduce the risks of non-payment, because we honor the credit as if we had issued it.

Our experienced team will work with your company to help:

• Obtain optimal terms and wording of letters of credit prior to issuance
• Resolve challenges that emerge during the course of export transactions
• Protect against order cancellation
• Mitigate foreign buyer, bank, and country risk when Fifth Third Bank confirms the letter of credit
• Expedite cash flow by using our discount programs

Centralizing your export letter of credit activities with Fifth Third Bank can provide additional benefits, such as:

• Customized fees and services
• Centralized information through Fifth Third Global Trade Direct^SM, our secure online portal
• Greater consistency in document examination
• Enhanced customer-focused communication and service