Lloyds launches Export Assist to reduce letter-of-credit errors and payment delays

Lloyds has launched an artificial intelligence-powered document-checking service for UK exporters as it seeks to reduce errors in letters of credit that can delay international payments and leave businesses waiting longer for cash.

The bank announced Export Assist on 11 November, making the service available to exporters regardless of whether they hold an account with Lloyds.

Powered by Complidata’s TradeSpeed technology, the platform examines export documentation before it is presented to a bank, identifying potential discrepancies that could result in additional charges, document resubmissions or delayed settlement.

Lloyds estimates that documentation errors cost UK exporters up to 500,000 trading days annually. It says approximately 65 to 80 per cent of letter-of-credit document presentations contain errors or discrepancies, creating additional administrative work and potentially extending payment timelines.

Letters of credit provide an important form of payment security in international trade, but that protection depends on exporters presenting documents that comply with the credit’s terms and applicable banking rules.

Even relatively minor inconsistencies between invoices, transport documents and the requirements of a letter of credit can result in a bank raising discrepancies rather than making a straightforward compliant payment.

Export Assist is designed to identify those problems before submission. The service checks documentation against the letter of credit and its amendments, the ICC’s UCP 600 rules and the relevant ISBP 821 guidance.

It also compares information across documents to identify inconsistencies. The service operates on a pay-per-presentation basis without a subscription requirement, according to Lloyds.

The bank’s published service information indicates that discrepancy charges can reach £100, although actual costs depend on the transaction and the institutions involved.

The launch is aimed partly at smaller exporters, for which document preparation can consume substantial administrative resources and payment delays can increase reliance on overdrafts or other working-capital facilities.

Scottish exporter Halspan was among the businesses that tested the service. Lloyds has not published quantified evidence of reductions in rejection rates or payment times from those early users.

Importantly, the platform does not guarantee document acceptance or payment. Exporters remain responsible for reviewing their submissions and satisfying the requirements of their transactions.

The commercial opportunity is nevertheless clear. Reducing documentary errors before presentation could shorten the time between shipment and cash collection, improving liquidity without requiring exporters to borrow additional money.