Facilitating reliable procurement and mitigating transaction risks for high-volume domestic trade and international import operations.
Facility Type
Inland (FLC) & Foreign (DLC)
Tenure Terms
Sight & Usance (up to 180 Days)
Collateral / Margin
Cash Margin or Property Backed
Supplier Protection
Irrevocable Bank Commitment
Understanding Letter of Credit (LC)
A Letter of Credit (LC) is an irrevocable undertaking issued by a financial institution guaranteeing that a buyer's payment to a seller will be made upon compliant presentation of stipulated transport and commercial documents.
Types of LC Facilities We Consult On:
Inland Sight / Usance LC: For domestic raw material and equipment sourcing.
Foreign / Import LC: For international procurement compliant with UCP 600 standards.
Revolving LC: For recurring supply contracts with established domestic vendors.
Back-to-Back LC: For merchant traders and intermediary export houses.
Frequently Asked Questions
An inland LC is used for commercial transactions between buyers and sellers within India under domestic banking regulations. A foreign (import) LC is used for international procurement following ICC Uniform Customs and Practice (UCP 600) rules.
A Sight LC requires the issuing bank to make payment immediately upon presentation of compliant shipping documents. A Usance LC allows an agreed credit period (such as 60, 90, or 180 days) before final payment is settled.