We provide lender-ready capital raise packaging and debt or equity placement support for business owners and buyers looking to secure serious term sheets and close funding on a defined timeline.
For business owners and acquirers pursuing private debt submit your deal for review. We revert within one working day with next steps and either a quote for our services.
Finance your next trade, project or acquisition.
Debt structuring, targeted lender outreach and negotiation support through closing.
Paid advisory. Upfront retainer applies.
Letters of Credit and Trade Finance
A sight LC is a letter of credit "available by payment at sight". The issuing bank, or a nominated bank, undertakes to pay the beneficiary on presentation of complying documents, without any agreed delay.
"At sight" does not mean instantly. Under UCP 600, banks have up to five banking days after the day of presentation to decide whether documents comply. Once they do, payment is made.
Some sight LCs call for a sight draft, which is a bill of exchange payable on demand. Many modern LCs simply require the documents.
For LC basics, see documentary letter of credit, and for the buyer's view, letters of credit for importers.
If documents are discrepant, the bank may ask the buyer to waive the discrepancies. Payment then depends on the buyer, so sight protection is only as good as the documents.
| Sight LC | Usance LC | |
|---|---|---|
| When the seller is paid | On compliant presentation | At a future date, such as a set number of days after shipment |
| Buyer cash flow | Must fund at presentation | Gets time to sell goods first |
| Seller cash flow | Fastest | Delayed, unless discounted |
| Seller credit risk period | Short | Longer, until maturity |
| Typical cost to seller | Lower | Higher if discounting or confirmation over tenor |
| Typical use | Sellers needing cash, buyers with funding | Buyers needing credit terms |
Usance is covered in the usance letter of credit guide, and acceptance versus usance in difference between usance and acceptance LC.
Exporters prefer sight when they need cash quickly to fund the next order, when the buyer or issuing bank is less known, or when they do not want to discount a deferred payment.
Importers may accept sight when they have their own cash or a facility, such as an import trade loan, that pays the LC at sight and gives them time to repay from resale. This combination gives the seller sight payment and the buyer credit terms, funded by a lender rather than by the seller.
Sight is less suitable when the buyer cannot fund on arrival and the seller is willing to extend credit. In that case usance, or an open account with supply chain finance, may fit. See trade finance vs supply chain finance.
Sight LCs are only fast when documents are clean. Common discrepancies:
Practical steps:
Financely is a fee-based arranger and advisor, not a bank or lender. We do not issue LCs. We help buyers and sellers agree workable terms, prepare applications and approach banks that may issue, confirm or fund. Fees pay for the work, not for an outcome. See trade finance advisory and export letter of credit.
Payment is made once the bank has examined documents and found them compliant, within up to five banking days after presentation.
For the seller, it shortens the credit risk period. Both depend on compliant documents.
The buyer, at presentation, either from cash or a bank facility.
Yes, if the issuing bank allows it and a bank is willing.
Send us the contract and proposed LC terms, and receive a scoped quote for arranging issuance or confirmation with suitable banks.
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