Professional Service. Term sheet prepared September 2025. LC issuance is subject to bank underwriting and approval.
Documentary Letter of Credit (DLC) Term Sheet
We arrange the issuance of sight and usance Documentary LCs under UCP 600. Sight LCs provide immediate payment on compliant presentation. Usance LCs provide deferred payment terms and can be confirmed to improve credit quality. Margin financing is available where applicants require support, subject to separate underwriting.
Why Documentary LCs
They convert buyer credit risk into bank risk. Sellers gain payment certainty against compliant documents; buyers benefit from structured settlement aligned with shipment and delivery.
Issuing Bank Categories
Investment-grade international banks, established regional commercial banks, and specialist trade correspondent banks with tested LC desks and SWIFT access.
Margin Financing
For companies unable to lock up the required cash margin, we arrange private debt lines or borrowing base facilities. Approvals depend on collateral liquidity and covenant compliance.
| Indicative DLC Term Sheet | ||
|---|---|---|
| Item | Term | Comment |
| Applicant | Corporate buyer or trader with audited accounts | Minimum turnover and track record required |
| Instrument | Irrevocable DLC under UCP 600 | Sight DLC:
payable immediately. Usance DLC: payable at 30–180 days. |
| Face Value | Deal dependent | Confirmed post-underwriting |
| Tenor | Sight or 30–180 days | Longer subject to issuing and confirming bank appetite |
| Availability | Single or revolving | Red or green clause subject to controls |
| Confirmation | Optional confirmation by a second bank | Used to mitigate issuing bank or country risk |
| Cash Margin | % of LC face value | Margin finance possible for qualified applicants |
| Collateral & Controls | Assignment of proceeds, escrow waterfalls, CMA, insurance endorsements | Negotiable bills of lading or warehouse receipts to support title |
| Fees & Pricing | Issuance, confirmation, and margin requirements set by banks | Arrangement fees quoted on request |
| Documentation | Sales contract, invoice, B/L, packing list, insurance, inspection, certificate of origin | KYC/AML and sanctions clearance mandatory |
| Conditions Precedent | Executed agreements, funded or financed margin, accepted LC text | All controls in place prior to issuance |
| Governing Rules & Law | UCP 600; facility law and dispute forum specified | Local counsel opinions where required |
Process And Timeline
Applicant submits trade summary, draft LC text, and shipment plan. Preliminary KYC and sanctions screening conducted.
Audited financials, corporate documents, sales contracts, pro forma invoice, insurance terms, and inspection arrangements provided.
We issue an indicative DLC term sheet outlining proposed structure, bank categories, fees, and margin requirement.
Issuing bank completes credit assessment. Confirming bank reviews LC text and corridor risk where confirmation is requested.
If cash margin is required, applicant either funds it directly or applies for structured margin financing. Separate approvals and covenants apply.
Final LC text, document lists, and inspection/insurance conditions aligned to reduce refusal risk.
Issuing bank releases the DLC via SWIFT. Advising bank authenticates and notifies the beneficiary.
Confirming bank adds its irrevocable undertaking to pay against compliant documents.
Exporter ships goods and presents documents as per LC. Compliance check performed by banks within UCP 600 timelines.
For Sight DLC: payment made immediately on acceptance of documents.
For Usance DLC: payment made at maturity per terms.
Post-closing reporting, including settlement confirmation and compliance records, delivered to all parties.
Request Your Documentary LC Term Sheet
Provide your draft LC text, contracts, and shipment plan. We align terms with bank requirements, arrange issuance through credible institutions, and secure confirmation where required. Margin financing can be structured for applicants needing support. Arrangement fees quoted upon intake.
Start Your LC RequestDisclaimer. This term sheet is indicative. Final issuance and confirmation terms are determined by banks following credit approval. Margin financing is subject to separate underwriting. Documentation quality and transaction controls directly influence pricing, eligibility, and capacity.
