A UK based chamber of commerce is freezing the prices of its letter of credit (L/C) prices in a bid to encourage more local exports.

The L/C and other export finance and support services provided by Chamber International reflect the trend in the UK for more participation of non-bank providers in the documentary credit market.

Freezing prices

Chamber International's director, Tim Bailey, says it is "freezing prices for the second successive year in spite of the rising costs for our operation."

"By holding our costs, with the exception of one service - certificates of conformity - we're doing what we can to help exporters remain competitive as more and more SMEs get a taste for exporting," he adds.

Popular service

The service seems to have proved popular in some quarters. One warehouse and logistics manager told local media that his firm found it easier to use Chamber International's L/C services than those offered by his previous provider.

Bar Products and Services, a Bradford based supplier to the wire, tube and rod drawing industry, credits the chamber with helping it to use L/Cs to assist its development of export sales to India and China.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.