Financial considerations
Exporter:

• Name and address of the Importer's bank
• Status enquiry on the Importer. (Provided by one of Barclays registered credit rating companies)
• Standing of Importer's bank (Confirming Bank)
• Currency exchange rate fluctuation
• Risk of non-payment by Importer's bank due to country risk (NB: Your Barclays contact can advise you about the banks and countries Barclays are happy to confirm, together with the applicable pricing).
  
  Importer:
  Importers will need to request a specific bank facility for Documentary Letters of Credit before any instructions can be issued. In assessing the level of facilities required, you will need to consider:
• The anticipated turnover. The facility will need to cover the total value of LCs the Importer expects to have outstanding at any one time
• The Importer's maximum potential period of liability. This includes both the maximum validity period of the LC and the maximum term of the contract. The Importer may need to allow the Exporter some 'lead time' in order to organise the goods ready for transportation
• Currency exchange rate fluctuation.
  

To keep the costs of the transaction down, the Importer should keep the validity period and any extended credit terms as short as possible, thus reducing the overall level of facilities required.

Supply Considerations

• Delivery periods on goods
• Delays with particular goods (eg. through manufacturing delays)
• Pre-shipment inspection.

Shipping Considerations

• Methods of transport available, direct or indirect
• Frequency of departures
• Approximate costs of alternative methods/routes
• Type of packing
• Correct Incoterms (latest version) according to contract/transport mode.
• Optimum delivery point, ie. transported from where to where?
• Goods insurance
• Delays for consular work or inspection formalities.

Agreeing Terms of LC

To reduce unnecessary costs and delays in? Amending the Letter of Credit after it has been established, we strongly recommend that the Exporter sends the Importer a template of the terms and conditions that they wish to be included.