Usance LC Issuance & Discounting for Solar Panel Importers
Lock supplier capacity without cash strain. Use a Usance Letter of Credit to pay your module supplier at sight while you repay at tenor. We structure UCP600 LCs with UPAS or confirmation so the seller is paid on presentation and you gain 30–180 days to turn inventory, complete installation, and collect from clients.
Best for
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Importers of PV modules, inverters, and BOS
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EPCs needing supplier payment at sight
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Distributors financing inventory turns
Typical terms
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Tenor 30–180 days usance
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Amounts USD 1m–50m per LC, higher by program
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UCP600, availability by acceptance or negotiation
Why it works in solar
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Locks factory slots and price
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Matches cash out to client milestone receipts
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Improves supplier trust and delivery timing
What we deliver
LC structuring
Draft MT700 wording, Incoterms, shipment and presentation windows, documents, reimbursement path, and charges clause aligned with supplier operations.
Bank lineup
Issuer selection by corridor, confirmation options with first-class banks, UPAS setup, and advising or nominated bank capacity for fast examination.
Execution to settlement
Fee letters, issuance, document review support, discrepancy management, acceptance, and discounting or negotiation so your supplier is paid at sight.
UPAS and discounting in practice
UPAS (Usance Paid At Sight)
Seller receives funds at sight from the bank. Buyer repays at the usance maturity. Pricing is split per contract. Works well for PV module shipments with tight factory schedules.
Usance acceptance discounting
After compliant documents and bank acceptance, the nominated or confirming bank buys the deferred payment and advances funds to the seller less discount and fees.
Eligibility and documents required
Baseline profile
- Operating importer or EPC with verifiable revenues
- Purchase contract or PO with clear Incoterms
- Acceptable issuer jurisdiction and shipping corridor
- Reasonable concentration by supplier and country
Checklist to start
- KYC, corporate docs, ownership table
- Latest financials and bank statements
- Draft LC text with UCP600, documents, and dates
- Supplier’s advising bank details and any format
Illustrative pricing
Issuance 0.30%–1.20% flat per 90 days by issuer name and corridor. Confirmation 0.40%–1.50% flat where needed. Document examination 0.10%–0.20% flat. Discount margin is a spread over base for the usance period. Final allocation follows the LC charges clause.
Step-by-step to issuance and payment
- Share supplier contract, draft LC text, shipment plan, KYC, and financials.
- Receive indicative terms, bank lineup, and fee letters.
- Finalize wording and reimbursement path. Issue MT700.
- Supplier ships and presents documents to the nominated or confirming bank.
- Bank examines, obtains acceptance, and pays seller at sight via UPAS or discounting.
- Buyer repays at maturity. Settlement reconciles across banks.
Controls that keep approvals smooth
Clean wording
Irrevocable, clear shipment and presentation periods, standard docs, and named nominated bank.
Capacity
Issuer strength and a confirmer when country risk or bank risk is higher.
Logistics
Incoterms aligned with transport documents to reduce discrepancies.
Frequently asked questions
Can my supplier be paid at sight while I pay later?
Yes. UPAS or acceptance discounting pays the supplier at sight. You repay the bank at the usance maturity.
Do I always need confirmation?
Not always. It depends on issuer and country risk and on the supplier’s requirement. We add confirmation when it improves payout certainty or eligibility for discounting.
What causes delays?
Ambiguous wording, nonstandard certificates, or conflicting dates. We keep to standard, bankable terms to avoid discrepancies.
Request Usance LC & UPAS Terms
We arrange Usance LCs under UCP600 with UPAS or acceptance discounting so your solar suppliers are paid at sight while you repay at 30–180 days. Our team drafts clean LC wording, lines up an issuer and a confirming bank when needed, manages document examination and acceptance, and coordinates settlement so cargo moves without cash disputes. Send your supplier contract, draft LC, shipment plan, KYC, and financials and we will return eligibility and pricing bands with a clear closing path.
Request Indicative Terms
Financely acts as advisor and arranger on a best efforts basis. We are not a bank. All transactions are subject to KYC and AML, sanctions screening, credit approval, legal documentation, and third-party diligence. Nothing here is a commitment to lend or an offer of securities. Terms vary by bank names, jurisdictions, and documentary quality.