LC (Letter of Credit)
Letters of Credit are documentary payment mechanisms typically used in international trade where performance and payment are linked to compliant document presentation. Operational details matter: document lists, shipping terms, and timelines should be realistic and coherent.
What an LC supports
- Structured payment in cross-border trade based on documentary compliance.
- Clear alignment between shipment, documents, and payment conditions.
- Reduction of payment uncertainty when counterparties operate across different jurisdictions.
LC issuance and confirmation are actions of regulated banks subject to internal policy and compliance checks.
Operational focus points
| Area | Typical issues |
|---|---|
| Document list | Overly complex or contradictory lists increase discrepancy risk. |
| Incoterms & shipment | Terms must align with logistics reality and documentary requirements. |
| Dates & periods | Unrealistic shipment or presentation periods create avoidable non-compliance. |
| Beneficiary / applicant data | Incorrect details create compliance and operational delays. |
| Conditions | Conditions should be measurable and documentable, not subjective. |
How we support an LC request
Focused assistance for clean presentation.
1
Structure review
Clarify commercial terms and expected documentary set.
2
Document alignment
Help align shipping, invoices, and core documents with LC conditions.
3
Coordination
Coordinate procedural communication to reduce discrepancies and rework.