International trade

Virgin Money issues an LC on your behalf, guaranteeing payment to the exporter only if they meet all the terms and conditions — such as delivering the correct documents within the agreed timeframe and meeting shipment deadlines.

The bank deals in documents, not goods, and payment is made only when all LC conditions are met precisely.

• Builds trust with new or overseas suppliers.
• Reassurance of timely payment may offer you enhanced negotiating power as an importer, opening up discounts or better payment terms.
• Supports trade with higher-risk or unfamiliar markets.
• A letter of credit can also require independent inspection of goods before shipment – important when buying from new suppliers.
• Enables suppliers to access pre-shipment finance from their own bank.

• You’re trading with a new supplier.
• Your supplier requires payment assurance.
• You want stronger negotiating power.
• You’re entering a new market.

The buyer arranges for their bank to issue an LC in your favour. Virgin Money (or another UK bank) advises the LC to you. You receive payment only if you meet all the LC terms, such as submitting the correct documents, within the required timeframe and meeting shipment deadlines.

The bank deals in documents, not goods, and payment is made when all conditions are met exactly.

• Reduces the risk of non-payment from overseas buyers.
• Reassurance to your customer of fulfilling the contract re quantity, quality and timing may offer you enhanced negotiating power as an exporter, opening up higher sale prices or better payment terms.
• Helps secure sales in higher-risk or unfamiliar markets.
• Supports access to pre-shipment finance.
• Builds trust with new international customers.

• You’re selling to a new international customer and want greater certainty of payment.
• You’re trading in a new or unfamiliar overseas market where payment risks may be harder to assess.
• Your customer is unable or unwilling to pay in advance, but you still need payment security.
• You want stronger negotiating power.

After shipping goods, the exporter sends trade documents, for example, an invoice, a certificate of origin, transport documents, to their bank with instructions to forward them to the importer’s bank.

The importer’s bank releases the documents, which are needed to claim the goods, only when payment is made or a formal promise to pay is accepted.

• Provides a secure method of payment for international trade.
• Helps exporters retain control of goods until payment terms are met.
• Helps importers ensure they have control of the goods when they make payments.
• Reduces risk compared to direct dealings with overseas buyers.
• Can be used for both immediate and deferred payment arrangements.

• Documents Against Payment (DP) – Documents are released only when the importer pays immediately. Also known as sight collection.
• Documents Against Acceptance (DA) – Documents are released when the importer accepts a Bill of Exchange, committing to pay at a future date. Also known as term collection.

Virgin Money issues a Bond or Guarantee on your behalf, giving the beneficiary the right to claim payment if you fail to meet agreed terms, such as delivering goods or services.

Payment is typically made upon presentation of a demand certificate - a signed statement from the beneficiary outlining the non-performance.

• Offers reassurance to overseas customers and partners.
• Helps secure international contracts and tenders.
• Supports your credibility in global markets.
• Can be tailored to suit different contract requirements.

• Tender or Bid Bonds - for contract bidding.
• Advance Payment Guarantees - to secure upfront payments.
• Performance Bonds - to guarantee delivery or service.
• Warranty or Retention Bonds – to cover post-delivery obligations.

• UKEF provides a guarantee to Virgin Money, allowing us to offer finance to eligible UK exporters.
• You can apply for funding or guarantees to support your export activities.
• Facilities are typically available for up to 2 years, with potential extensions up to 5 years (subject to approval).
• Up to 80% of the facility value is guaranteed by UKEF, but your business remains responsible for repaying the full amount.
• Arrangement fees apply annually, regardless of the initial term.

• Improves cash flow to support export growth.
• Enables access to finance without needing full collateral.
• Backed by the UK government for added confidence.
• Available in GBP, USD or EUR.

• Your business must have at least 5% export sales in each of the last three years, or more than 20% in any one of those years.
• Facilities can be provided up to a maximum equivalent of £31.25 million.
• You must be based and operate in the UK (excluding Channel Islands, Isle of Man & Northern Ireland).

Additional criteria apply — speak to your Relationship Manager for help.

• A suitable facility must be agreed and all documentation signed.
• Security may be required — any asset used as security may be at risk if the agreement is broken.

Virgin Money is a proud participant in UKEF's General Export Facility, Export Working Capital Scheme, and Bond Support Scheme.

An Import Loan is tailored to match your trade cycle (the point from raising a purchase order, through shipping, customs, delivery, checking goods & services, making payments and potentially re-selling the goods).

It helps you finance goods through the trade cycle, accommodating payments that may be required at different stages of the process. An Import Loan can be used alongside Letters of Credit or Documentary Collections, allowing you to settle payments to suppliers with greater flexibility and control.

• Gives greater flexibility when negotiating payment terms with suppliers.
• Provides a separate facility that preserves existing working capital facilities, like an overdraft, for day-to-day business needs.
• Matches funding with specific imports for greater clarity and transparency re transactions.
• Allows you to borrow in the same currency as your trade transaction - available in GBP, USD or EUR.
• Can be linked to your Confidential Invoice Discount facility.

An Export Loan is tailored to match your trade cycle - the point from receiving an export order, through manufacturing or sourcing of the goods, packing, shipping, customs, delivery, checking goods & services and receiving payments.

It helps you finance goods through the trade cycle, accommodating costs that may be incurred at different stages of the process. An Export Loan can also be offered in conjunction with an Export Letter of Credit advised through us, or another UK bank.

• Improves cash flow between order confirmation and payment receipt.
• Provides a separate facility that preserves existing working capital facilities, like an overdraft, for day-to day business needs.
• Matches funding with specific imports for greater clarity and transparency re transactions.
• Allows you to borrow in the same currency as your trade transaction - available in GBP, USD or EUR.
• Can be linked to your Confidential Invoice Discount facility.