Letter Of Credit Services

Letter Of Credit Services

Letter Of Credit Services

Bottom line: we arrange bank issued letters of credit that clear risk, match contract terms, and pay on time. Our team handles wording, issuing and confirming banks, SWIFT routing, reimbursement, and presentation so you avoid errors and delays. Pricing, tenor, and structure are negotiated against real credit appetite, not guesswork.
Standards
  • UCP 600 documentary credits
  • ISP98 standby credits
  • URDG 758 demand guarantees
What We Arrange
  • Issuance and advising
  • Confirmation and silent confirmation
  • Reimbursement and settlement
Who We Serve
  • Exporters and importers
  • Commodity traders and manufacturers
  • EPC, utilities, and project sponsors

Check LC Eligibility And Fee Bands

Answer a few questions. We estimate issuance or confirmation fees, show the likely route, and list documents to prepare.

Step 1 of 16

End To End Letter Of Credit Services

We scope the transaction, set the rule set, and align wording to the sale and transport contract. Issuing bank selection is based on buyer relationship and country limits. Advising and confirmation routes are benchmarked against price and settlement reliability. We structure reimbursement so funds reach the beneficiary without hold ups. Our team manages amendments, tolerances, insurance mentions, and presentation rules to reduce discrepancies. If the LC must interface with project revenue or a trade facility, we set controls that satisfy both.

Issuance And Advising
  • Draft and vet MT700 fields
  • Align goods description and Incoterms
  • Nominate advising bank with fast authentication
Confirmation And Risk Sharing
  • Add confirmation or silent confirmation
  • Risk participate when confirmation is limited
  • Manage fee letters and acceptance tracking
Reimbursement And Settlement
  • Direct reimbursement or reimbursing bank
  • Clear MT742, MT103, MT202 COV paths
  • Match bank holidays and cut offs

Types Of Letters Of Credit We Arrange

LC Type What It Solves
Sight LC (UCP 600) Immediate payment on compliant presentation, good for sellers who want cash on shipment with document certainty.
Usance LC Deferred payment for the buyer, seller can discount at bank, suitable when the goods need a sell down period.
UPAS LC Seller is paid at sight, buyer pays at maturity, used to improve working capital while keeping seller liquid.
Standby LC (ISP98) On demand support for performance or payment risk, common for capacity payments, lease rentals, and advance payments.
Transferable LC Lets the first beneficiary transfer all or part to a second beneficiary, typical for traders with back to back supply.
Back To Back LC A second LC is issued based on the first, used when transfer is not allowed or when structure needs different terms.
Revolving LC Automatically reinstates value or time, useful for repeat shipments under a master contract.
Red Clause / Green Clause Allows pre shipment advances against warehouse receipts or documents of title, needs tight collateral rules.
Confirmed LC Adds a confirming bank’s promise to pay, reduces issuer and country risk for the seller.

How We Run The LC Process

  1. Intake. Confirm contract terms, Incoterms, transport plan, and insurance. Choose UCP 600 or ISP98.
  2. Wording. Draft field by field and set tolerances, latest shipment, presentation period, and original document counts.
  3. Bank Route. Select issuing bank with buyer, nominate advising bank, and place confirmation if required.
  4. Reimbursement. Decide direct pay or reimbursing bank. Set clear MT742 and settlement paths.
  5. Presentation. Check documents, cure discrepancies early, and track acceptance and maturity if usance.
  6. Settlement. Funds flow per the agreed path with clear value dates and charges.

What You Receive

  • Bank ready LC wording and checklists
  • Advising and confirmation options with fee bands
  • Reimbursement map and SWIFT message plan
  • Document templates and discrepancy playbook
  • Weekly status and issue logs until funds are credited

Client Feedback

★★★★★

Our export LC needed confirmation on short notice. The wording was clean, the confirming bank was in place, and funds credited at sight without noise.

Head Of Treasury, Food Exporter
★★★★★

They fixed the LC fields that kept causing discrepancies. Our bank stopped bouncing docs and our cash cycle improved.

CFO, Industrial Manufacturer
★★★★★

UPAS structure paid us at sight while our buyer paid at 120 days. Settlement ran exactly as mapped.

Managing Director, Commodity Trader

FAQ

When should I add confirmation
Add confirmation when the issuing bank or its country risk is outside policy, when payment certainty is critical, or when receivable purchase depends on confirmed proceeds.
What drives LC fees
Issuer rating, country risk, tenor, currency, document complexity, transferability, and size. Fees are quoted per annum and pro rated for the actual tenor. Advising and SWIFT charges are one off.
How do UPAS LCs work
The seller is paid at sight by a financing bank, the buyer repays at maturity. It blends sight payment to the seller with deferred payment by the buyer, which helps working capital on both sides.
Is a standby LC the same as a bank guarantee
They are similar as on demand undertakings. A standby is governed by ISP98 in most cases, a demand guarantee often uses URDG 758. Choice depends on the contract and the beneficiary requirement.
What causes LC discrepancies
Misaligned descriptions, missing insurance or transport clauses, wrong document dates, and inconsistent quantities. We prevent this by drafting wording that mirrors the sale contract and the transport plan, then we give document templates to your team and counterparties.

Ready To Set Up Your LC

Send your draft contract, shipment plan, and target tenor. We will confirm the route, fees, and wording.

Request A Term Sheet

This page is for corporate users. Nothing here is a commitment to lend. All services are subject to KYC, AML, sanctions, and bank approvals.

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.

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Request a Proposal / Submit a Deal

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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Once 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.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.