Professional Service. Page prepared September 2025. LC issuance is subject to bank underwriting and approval.
Revolving Letter of Credit (LC) Term Sheet
Set up a revolving LC facility under UCP 600 to support recurring shipments. We structure time-revolving or value-revolving features, align document sets to reduce refusals, and add confirmation where required. Margin funding can be arranged for qualified applicants under a separate approval.
Why Revolving
Repeat draws without redocumenting a new LC each time. Supports monthly or weekly liftings, simplifies capacity planning, and tightens operational control around presentations.
Revolving Types
Time-Revolving:
Amount reinstates after a fixed period.
Value-Revolving:
Amount reinstates upon utilization and settlement. Both can be sight or usance.
Issuing Bank Categories
Investment-grade international banks, established regional commercial banks, and trade-focused correspondent banks with seasoned LC desks and live SWIFT.
| Indicative Revolving LC Term Sheet | ||
|---|---|---|
| Item | Term | Comment |
| Applicant | Corporate buyer or trader with audited accounts | Recurring trade flows and defined shipment calendar |
| Instrument | Irrevocable DLC under UCP 600 (sight or usance) | Transferability per bank approval |
| Facility Size | Aggregate limit (USD/EUR) with sub-limits by corridor | Utilization caps per shipment and per period |
| Revolving Feature | Time-revolving and/or value-revolving | Automatic or discretionary reinstatement |
| Tenor | Sight or 30–180 days usance | By issuer/confirming bank appetite |
| Confirmation | Optional by confirming bank | Mitigates issuer or country risk |
| Post-Acceptance Discounting | Available for usance draws after acceptance | Not applicable to sight draws |
| Cash Margin | % of outstanding exposure | Structured margin finance available for eligible applicants |
| Controls | Assignment of proceeds, escrow waterfall, discrepancy cure windows | Insurance with loss-payee endorsements; negotiable B/L or warehouse receipts |
| Fees & Pricing | Issuance/confirmation fees set by banks | Arrangement & underwriting — request a quote |
| Documentation | Master LC terms, shipment schedule, doc list, inspection and insurance | Full KYC/AML and sanctions clearance |
| Conditions Precedent | Executed facility, funded/financed margin, accepted LC wording | Operational SLAs agreed with logistics and inspection agents |
| Governing Rules & Law | UCP 600; facility law and dispute forum specified | Local counsel opinions where required |
Process And Timeline
Send trade calendar, corridors, counterparties, and draft LC language. We run preliminary KYC and sanctions checks.
Provide audited financials, corporate docs, sales contracts, insurance and inspection terms, historic presentation stats, and logistics plan.
We outline facility size, revolving type (time/value), tenor buckets, confirmation need, and margin requirement. Arrangement fee: request a quote.
Issuing bank evaluates limits and reinstatement mechanics. If required, confirming bank reviews issuer/country risk and LC text.
Applicant funds cash margin or applies for structured margin finance. Separate approvals, covenants, and reporting apply.
Lock master LC wording, revolving conditions, shipment windows, tolerance clauses, inspection SLAs, insurance endorsements, and discrepancy cure steps.
Facility LC is issued via SWIFT; advising bank authenticates. Drawdown procedures and reporting cadence activated.
Beneficiaries ship and present per LC. For usance draws, acceptance issued on compliant documents; sight draws paid at presentation.
Limits reinstate per time schedule or upon settlement, as agreed. Utilization and concentration tests monitored.
Payments flow per assigned proceeds/escrow waterfall. Provide periodic covenant and performance reporting.
Quarterly review of capacity, tenor, and confirmation appetite; upsizes considered against performance and controls.
Request A Proposal For A Revolving LC Facility
Share your shipment calendar and draft LC wording. We structure time- or value-revolving features, select credible issuers and confirming banks, and arrange margin funding if needed. Underwriting and arrangement fees are quoted after review.
Request A ProposalDisclaimer. Terms are indicative. Final facility size, revolving mechanics, and pricing are determined by banks after credit approval. Margin finance is a separate facility subject to its own underwriting. Documentation quality and controls affect capacity and cost.
