London-headquartered Lloyds Bank has launched a new strategic trade partnership with Switzerland-based UBS that will allow the British bank's UK customers to benefit from the Swiss bank's 700-strong global banking network, and provide them with enhanced access to export letters of credit (L/Cs).

The partnership expands Lloyds' global reach and will help its UK-based clients to do business in 170 countries around the world.

Rationale

Using an export L/C can give businesses the confidence to release goods knowing that payment will be guaranteed according to a Lloyds statement.

So long as its terms and conditions are fully met, the export L/C also presents funding options such as discounting, and enables businesses to receive payment early.

Overseas opportunities

"Many UK-based businesses [are] struggling to take advantage of lucrative opportunities overseas," according to head of trade and working capital sales at Lloyds, Mansour Davarian.

"Our new partnership with UBS gives us the capability and reach to support clients exporting to more countries than ever before," he says.

UBS' global footprint

Head of transaction banking products at UBS, Markus Meyer, says the partnership with Lloyds Bank, "leverages our worldwide footprint and it is with great pleasure that we see them expand their partner network."

"Export L/Cs are a lynchpin of international trade and improving their provision is an important way for the global banking community to facilitate the economic benefits offered by exporting," he concludes.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.