Documentary Letter of Credit (LC/DLC)

A Documentary Letter of Credit (DLC) is a payment mechanism used in international trade that provides security to both buyer and seller. The issuing bank guarantees payment to the seller upon presentation of compliant documents proving that goods have been shipped according to the terms of the sale contract. Governed by UCP 600 rules from the International Chamber of Commerce.

Key Features

Payment Security: Bank guarantees payment upon compliant documents

Document-Based: Payment triggered by documents, not goods inspection

Dual Protection: Protects both buyer and seller interests

ICC Governed: Follows UCP 600 international standards

Bank Guarantee

Sight LC: Immediate payment upon document presentation

Usance LC: Payment at specified future date (30/60/90 days)

Confirmed LC: Second bank adds guarantee for extra security

Revolving LC: Reusable for multiple transactions

Application Procedure

Preliminary Assessment: Submit trade contract and LC requirements (1-2 days)

Complete Application: Provide beneficiary details and required documents (2-3 days)

Credit Evaluation: Bank reviews creditworthiness and collateral (3-5 days)

Terms Finalization: Confirm all conditions and sign agreement (1-2 days)

LC Issuance: Bank issues LC via SWIFT MT700 (2-3 days)

Required Documents

• Trade contract or Proforma Invoice
• Company registration certificate
• Financial statements (last 2-3 years)
• Bank statements (last 6 months)
• Import/Export license (if applicable)
• KYC/AML documentation
• Beneficiary and bank details
• Complete goods description and HS codes

Application form Consult Now