Professional Service. Term sheet prepared September 2025. LC issuance is subject to bank underwriting and approval.
Usance Letter of Credit (LC) Term Sheet
We arrange issuance of usance Documentary LCs under UCP 600. Optional confirmation can transfer risk to a confirming bank. After compliant document examination and acceptance, beneficiaries may request post-acceptance discounting. Margin financing for applicants can be structured separately, subject to underwriting.
Use Case
Deferred payment for buyers with sellers paid at maturity or earlier via discounting after acceptance. Suitable for recurring cross-border trades with clear title and insured cargo.
Issuing Bank Categories
Investment-grade international banks, established regional commercial banks, and specialist trade correspondent banks with experienced documentary units and correspondent networks.
Margin Financing
Applicants short on cash margin can request structured private credit or borrowing base solutions. Separate approvals, covenants, and controls apply.
| Indicative Usance LC Term Sheet | ||
|---|---|---|
| Item | Term | Comment |
| Applicant | Corporate buyer or trader with audited accounts | Minimum turnover and track record assessed at intake |
| Instrument | Irrevocable usance DLC under UCP 600 | Transferable status subject to bank approval |
| Face Value | Deal dependent | Confirmed after bank underwriting |
| Tenor | 30 to 180 days usance | By corridor, counterparty, and limits |
| Availability | Single or revolving | Red or green clause considered with controls |
| Confirmation | Optional confirmation by a second bank | Mitigates issuing bank or country risk |
| Post-Acceptance Discounting | Available after bank acceptance of compliant documents | Discounts the accepted deferred payment undertaking, not sight credits |
| Cash Margin | % of LC face value | Margin finance available for eligible applicants |
| Collateral & Controls | Assignment of proceeds, escrow waterfall, CMA or warehouse receipts as relevant | Insurance with loss-payee endorsements; negotiable B/L or equivalent title |
| Fees & Pricing | Issuance and confirmation fees set by banks | Arrangement and underwriting fees — request a quote |
| Documentation | Sales contract, invoice, packing list, B/L, inspection, insurance, certificate of origin | Full KYC, AML, and sanctions clearance for all parties |
| Conditions Precedent | Executed agreements, funded or financed margin, accepted LC text | All control mechanics in place prior to issuance |
| Governing Rules & Law | UCP 600; facility law and dispute forum specified | Local counsel opinions where required |
Process And Timeline
Submit trade summary, draft LC text, shipment plan, and counterparty details. Preliminary KYC and sanctions screening conducted.
Provide audited financials, corporate documents, sales contracts, pro forma invoice, insurance terms, inspection windows, and title pathway.
Receive an indicative usance LC term sheet with proposed structure, bank categories, tenor guidance, and margin requirement. Arrangement fee: request a quote.
Issuing bank completes credit assessment and reviews the LC text. If requested, a confirming bank assesses confirmation appetite for the corridor and issuer.
If cash margin is required, applicant funds it directly or applies for structured margin financing. Separate approval and covenant set applies.
Finalize LC text, document list, inspection SLAs, insurance endorsements, assignment of proceeds, and discrepancy cure mechanics to reduce refusal risk.
Issuing bank transmits the LC via SWIFT. Advising bank authenticates and notifies the beneficiary.
Confirming bank adds its irrevocable undertaking to pay against compliant presentation at maturity.
Exporter ships goods and presents documents per LC. Banks examine documents within UCP 600 timelines. Acceptance is issued for compliant presentations.
Beneficiary may request discounting of the accepted deferred payment undertaking to accelerate cash prior to maturity.
Payment is effected at the stated maturity by the obligated bank per the accepted terms. Assigned proceeds and escrow waterfalls are followed.
Settlement confirmation, presentation outcomes, and amendments recorded for audit and covenant compliance.
Request Your Usance LC Term Sheet
Upload 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 eligible applicants. Underwriting and arrangement fees are quoted after review.
Start Your LC RequestDisclaimer. This term sheet is indicative only. Final issuance, confirmation, and pricing are determined by banks following credit approval. Any margin financing is a separate facility subject to its own underwriting. Documentation quality and transaction controls directly affect pricing, capacity, and timeline.
