Letter of Credit
Secure international trade with bank-backed payment guarantees. Letters of credit give your suppliers confidence that payment will be made, and give you assurance that goods will be delivered as agreed.
Key Features
Payment Guarantee
Bank-backed assurance of payment to your international suppliers
Supplier Confidence
Strengthen supplier relationships with guaranteed payment instruments
Risk Mitigation
Protect against non-delivery and ensure documentary compliance
Trade Facilitation
Access new suppliers and markets with credible payment backing
Recently Funded Deals
See what's possible with the right finance solution
*Based on real deals settled by Andorra Private. Details may be generalised for confidentiality.
Unregistered MIS — Industrial Warehouse Portfolio
The Scenario
A property syndicate structured as an unregistered managed investment scheme sought finance to acquire a portfolio of large industrial warehouses in regional Victoria.
The Challenge
The syndicate required non-recourse lending with no directors guarantees — a structure many lenders are unfamiliar with. Loan documentation needed to reflect the MIS trust structure correctly, requiring coordination between the client, their solicitor, and the bank's solicitor.
The Solution
We identified a major bank willing to provide a lease-doc facility on a non-recourse basis. We then worked closely with all parties — the client, their legal counsel, and the bank's solicitors — to ensure the loan contracts correctly reflected the trust structure and that no personal guarantees were required.
The Outcome
The facility was successfully arranged with a major bank. The syndicate acquired the warehouse portfolio with no directors guarantees, and all loan documentation was executed correctly on the first pass.
Non-Recourse
Structure
None
Guarantees
Lease-Doc
Facility Type
Major Bank
Lender
Client Testimonials
Hear from our satisfied clients
“Nick as a broker is part of my dream team for not only residential but especially commercial lending and has been nothing short of brilliant! Always calm under pressure and gets the job done. Very proactive and knowledge far superior to other brokers I've worked with. He's also got another option up his sleeve to ensure you achieve your goals. Absolutely no hesitation in recommending Nick for all things finance. Do yourself a favour and have a preliminary chat with Nick.”
Rachael
Commercial Lending
“Nick is an absolute gun at his job. I've been through many brokers over the years, and he is by far the best I've worked with. His knowledge in the commercial space is second to none, and the way he handles the process is completely seamless.”
P
Commercial Finance
“Nick is super professional and highly competent in his craft. He guided me with credible lending options and advice during my commercial property purchase journey. Highly recommended.”
ADS Rawal
Commercial Property
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Start ApplicationWhat Is a Letter of Credit?
A letter of credit (LC) is a bank-issued instrument that guarantees payment to a supplier upon presentation of compliant shipping and trade documents. It is one of the most widely used payment methods in international trade, providing security to both the buyer and the seller.
For the buyer, it ensures goods are shipped and documented before payment is released. For the seller, it provides assurance that a creditworthy bank stands behind the payment obligation.
How We Help
Andorra Private assists Australian businesses in obtaining letters of credit through our banking and trade finance partners. We guide you through the application, documentation, and issuance process to ensure your LC is structured correctly for your trade requirements.
Whether you need a sight LC, deferred payment LC, or standby letter of credit, we match you with the right issuing bank and structure.
When to Use a Letter of Credit
Letters of credit are particularly useful when dealing with new international suppliers, high-value shipments, or markets where counterparty risk is elevated. They are also commonly required by suppliers in Asia, the Middle East, and Europe as a condition of trade.
If your supplier requires an LC, or if you want to mitigate the risk of non-delivery before committing payment, an LC is the standard solution.
Discuss Your Letter of Credit Needs
Our team specializes in finding the right lending solution for your unique situation. Get expert advice today.
Frequently Asked Questions
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