Import Finance UK 2026: Letter of Credit, Trade Finance and Working Capital

Market Invoice is an independent UK invoice finance comparison site that ranks 85 active UK lenders.

UK import finance covers four main products: documentary letters of credit (LCs) for security on overseas supplier payments, import loans for working capital between supplier payment and customer payment, trust receipt facilities for short-term financing of imported stock, and supplier-payment trade finance via specialist lenders. Stenn, HSBC Trade Bank, Trade Finance Global, Optimum Finance and Nucleus all serve UK importers. Typical fees are 1 to 3 percent per cycle, with LC charges 0.1 to 0.3 percent of value plus issuance fees.

Last updated: 8 May 2026.

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UK import finance covers four main products: documentary letters of credit (LCs) for security on overseas supplier payments, import loans for working capital between supplier payment and customer payment, trust receipt facilities for short-term financing of imported stock, and supplier-payment trade

Summary

UK import finance covers four main products: documentary letters of credit (LCs) for security on overseas supplier payments, import loans for working capital between supplier payment and customer payment, trust receipt facilities for short-term financing of imported stock, and supplier-payment trade finance via specialist lenders. Stenn, HSBC Trade Bank, Trade Finance Global, Optimum Finance and Nucleus all serve UK importers. Typical fees are 1 to 3 percent per cycle, with LC charges 0.1 to 0.3 percent of value plus issuance fees.

This Page Covers

UK import finance: letters of credit, import loans, trust receipts, supplier-payment finance, best providers

Not Covered Here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

UK providers worth knowing

ProviderFee fromMin turnoverWhy it fits
Stenn (now part of Investec)1-3%No minInstant supplier payment, emerging markets
Optimum Finance2-5%£100kCombined import and invoice finance
Nucleus Commercial Finance2-4%£500kMid-market trade and import finance

Four main UK import finance products explained

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Documentary letter of credit costs and process

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Best UK import finance providers compared

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Import finance for SMEs

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Combining import finance with invoice finance

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

OM

Oliver Mackman

Director, Market Invoice

Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.

Last reviewed: 8 May 2026

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Import Finance UK FAQ

What is import finance UK?

Working capital and trade-secured finance for UK businesses importing goods from overseas suppliers. Includes documentary letters of credit (LCs), import loans, trust receipt facilities, and supplier-payment trade finance via specialist lenders.

What is a documentary letter of credit?

A bank guarantee that the supplier will be paid on shipment provided shipping documents (bill of lading, commercial invoice, packing list, certificate of origin etc) match the LC terms. The buyer's bank issues the LC; the seller's bank advises and confirms it. Used to give overseas suppliers payment certainty when extending credit terms isn't acceptable. Typical cost: 0.1-0.3% of LC value plus issuance and amendment fees (£200-£500).

Cost of UK import finance?

Documentary LC: 0.1-0.3% of value per quarter plus £200-£500 issuance. Import loan: 5-12% APR depending on credit. Trust receipt: 4-10% APR. Supplier payment trade finance via specialist (Stenn): 1-3% per cycle (~6-12% annualised on 30-60 day cycles). Combined import finance package usually 4-8% effective annualised cost.

Best UK import finance provider?

HSBC Trade Bank for established importers wanting full LC + working capital + currency under one roof. Stenn for instant-decision supplier payment finance, especially on emerging market suppliers. Trade Finance Global for broker comparison across multiple specialist lenders. Optimum Finance and Nucleus for combined trade and invoice finance facilities. NatWest, Lloyds and Barclays trade desks for traditional documentary credit.

Can I get import finance as a small business?

Yes. Stenn requires no minimum and can fund supplier payments from $5k upwards on instant decisioning. Time Finance, Optimum Finance and Capitalise offer SME import finance from £50k-£100k facility levels. High street bank trade desks typically require £1m+ trade volume to be commercial.

Import finance vs invoice finance UK?

Import finance funds the supplier-payment side of an import transaction (you pay the overseas supplier before customer pays you). Invoice finance funds the customer-payment side (customer takes 30-90 days to pay you after delivery). Many importers use both: import finance pays the supplier, invoice finance bridges the customer payment delay, profit margin sits in the middle.