Notice. Advisory services only. Not a lender. Facilities depend on counterparty approvals, KYC/AML, regulatory constraints, and complete documentation. Information is indicative and subject to change.
Documentary Letter of Credit (DLC) — At Sight & Usance
What We Deliver
End-to-end arrangement of DLC issuance and confirmation for importers, distributors, and project buyers. We coordinate instrument text, bank shortlists, term sheets, compliance packs, and execution to issuance, with discounting where deferred payment is required.
Structures
- At sight DLC with confirmation
- Usance DLC with discounting or UPAS mechanics
- Back-to-back DLC chains aligned to upstream contracts
- Transferable DLC and red/green clause where applicable
- Standby variants available when performance security is the driver
Typical Parameters
- Ticket size: 5,000,000 to 250,000,000 USD
- Tenor: at sight to 180 days usance; extensions by agreement
- Rules: UCP600 for documentary credits; ISP98 for standby if used
- Pricing: issuance fee, confirmation margin, discount rate per risk band
Eligibility and Required Materials
Eligibility
- Executable commercial contract with clear Incoterms and schedules
- Clean sanctions profile across all parties and jurisdictions
- Operational capability for shipment, inspection, and delivery
- Payment performance history or successful pilots
Initial Materials
- Draft LC text and document presentation list
- Buyer/beneficiary KYC, corporate docs, and signatories
- Financials, bank statements, and fee funding plan
- Optional hedging policy if price or FX risk is material
We issue an intake checklist and data room index. Execution starts when the core pack is complete.
Risk Controls and Execution
Controls
- Exacting draft language and presentation rules to avoid discrepancy traps
- Confirmation based on issuer, country, and sector risk
- Inspection or collateral mechanics where counterparties require it
- Sanctions, AML, and UBO checks—no exceptions
Timeline
- Week 1: eligibility screen, draft alignment, bank shortlists
- Weeks 2–3: term sheets, KYC pack, confirmor engagement
- Weeks 4–5: credit approvals, documentation, CP schedule
- Week 6: issuance and, if required, confirmation effectiveness
Sample Term Sheet (Illustrative)
| Applicant | Importer or distributor |
|---|---|
| Beneficiary | Supplier or exporter |
| Instrument | Documentary Letter of Credit subject to UCP600 |
| Amount | Up to 250,000,000 USD; step-up subject to performance and limits |
| Tenor | At sight or up to 180 days usance |
| Confirmation | Optional by approved confirming bank based on jurisdictional risk |
| Discounting | Available for usance/UPAS; margin set per risk band and tenor |
| Documents | Commercial invoice, transport doc, packing list, inspection certs, and any special conditions |
| Pricing | Issuance fee and confirmation margin; discount rate for deferred payments |
| Conditions Precedent | KYC/AML clearance, draft approval, fee payment, and CP list completion |
| Governing Rules | UCP600; ancillary agreements under England & Wales or New York law |
Illustrative only. Final terms are set post-underwriting and bank approvals.
Open Client Intake
Request a quote or book a consultation. We structure drafts, secure issuance and confirmation, and coordinate documentation to effectiveness.
Open Client IntakeFAQs
At sight or usance—what’s the practical difference?
At sight pays on compliant presentation. Usance defers payment; discounting can convert it to immediate cash at an agreed margin.
Do I need confirmation?
Yes when issuer or country risk is elevated or the seller demands it. Pricing reflects risk band and tenor.
Why do LCs get rejected?
Discrepancies. Poor drafting, mismatched documents, or missed deadlines create refusal risk. Tight drafts and checklists reduce it.
Can this run alongside borrowing base or prepay?
Yes. DLCs often anchor supply while borrowing bases fund inventory and receivables. Terms must align to avoid cross-default traps.
Disclosures. No assurance on pricing, approvals, or timing. All transactions remain subject to bank credit, compliance clearance, and execution of definitive documents.
