Deferred Payment Letters of Credit: Usance LC Explained
Letter of Credit Refinancing: Extend Your Payment Window Without Breaking the Deal
That mismatch can kill your margin — unless you refinance the LC and buy time without defaulting.
In global trade, it's common for buyers to ask for 120 or even 180 days to pay. But many suppliers only accept payment terms backed by a 60–90-day UPAS (Usance Payable at Sight) or UPAU (Usance Payable at Usance) Letter of Credit. The result? You’re stuck between two timelines — and either someone gets paid late, or you eat the cost.
At Financely, we help clients avoid that trap. Our Letter of Credit Refinancing service gives you time to collect from your buyer by extending your LC maturity without disrupting your supplier relationship.
What Is LC Refinancing?
LC refinancing is the process of replacing or extending a short-term LC — typically UPAS or UPAU — with a new credit facility, so that you don’t default or tie up working capital. It’s often used when:
- Your buyer pays after the LC matures
- You need to roll the payment obligation forward
- You want to avoid burning your credit lines or straining supplier trust
It’s a professional solution to a common trade finance mismatch — and one that banks rarely offer unless you’re a top-tier client.
How the Refinancing Process Works
Here’s how we help:
| Step | What Happens |
|---|---|
| 1. Review LC and Buyer Terms | We evaluate your current LC maturity and receivable timeline |
| 2. Prepare Extension Package | We draft terms and timelines to present to refinancing partners |
| 3. Secure a New Facility | We match you with lenders who can refinance or extend your LC for 90–180 days |
| 4. Execute and Repay | You get breathing room to collect from your buyer and repay without default |
Example: 90-Day UPAS LC Extended to 120 Days
A client issued a 90-day UPAS LC to an industrial supplier, but their buyer had 180-day terms. Financely arranged a 120-day LC refinancing facility from one of our private lending partners — allowing the supplier to be paid on time, while giving the client time to collect and repay after their buyer settled.
Result: no default, no strained relationships, no working capital drain.
Why Use Financely for LC Refinancing?
We’re not just structuring paper — we’re protecting your reputation and your balance sheet. Here’s what we bring to the table:
- Access to LC refinancing funds and private credit desks
- Experience with complex supply chain timing
- Confidential support from review to closing
We step in before the deadline hits — not after the bank says “no.”
Need More Time to Pay Under a Letter of Credit?
We help clients extend or refinance UPAS/UPAU LCs with clear structure, private capital, and breathing room to match your cash flow. Submit your LC or speak with our team now.
Submit Your LC Book a 1:1 CallLetter of Credit Refinancing: Solve the Timeline Mismatch
At Financely, we specialize in LC refinancing for clients facing payment mismatches between suppliers and buyers. If your UPAS or UPAU Letter of Credit matures in 60–90 days but your buyer pays after 120 or 180, we help you refinance the LC, extend the term, and avoid default. With access to trade finance lenders, LC desks, and structured capital funds, we make sure your trade deal stays intact — even when the timelines don’t.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
