Letter of Credit: Issuance, Confirmation, Discounting Explained
Letter of Credit: Issuance, Confirmation, Discounting Explained
Letters of Credit (LCs) are the foundation of international trade. They provide sellers with payment assurance and buyers with proof that payment will only occur once contractual terms are met. Below we explain the critical stages and terms in the LC process, aligned with international banking practice under UCP600 and URDG758.
“Understanding issuance, confirmation, and discounting is what separates exporters who get paid on time from those who take unnecessary risk.”
Key Terms in the LC Process
How the LC Process Flows
Request a Term Sheet for LC Facilities
We arrange issuance, confirmation, and discounting lines across major international banks, ensuring enforceable wording and synchronized execution.
Start The ProcessFinancely is a placement and advisory firm. We are not a bank. We arrange issuance, confirmation, and discounting of letters of credit with our network of international banks. All mandates require AML/KYC and sanctions screening. Any securities-related activities, where applicable, are conducted through a licensed chaperone, Member FINRA/SIPC.
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.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
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.
