DocumentaryLetter of Credit.
Structured documentary credit solutions for international trade.
What a DLC does
Payment linked to specified documentary requirements.
A Documentary Letter of Credit can provide a structured method for handling payment within international transactions where payment is linked to specified documentary requirements.
Avis Galaxy Trading coordinates qualifying DLC requirements between relevant parties from the applicant or issuer side through to the receiving or beneficiary side.
Minimum transaction value
DLC enquiries are accepted from a minimum instrument amount of:
USD1,000,000
USD 1 million.
Our DLC services
Depending on the transaction, our involvement may include:
- Initial assessment
- Applicant coordination
- Issuer-side coordination
- Beneficiary coordination
- Documentation preparation
- Document review
- DLC structuring
- Instrument wording coordination
- Issuing-route coordination
- Receiving-route coordination
- Draft instrument review
- Amendment coordination
- Issuance coordination
- Advising coordination where applicable
- Confirmation coordination where applicable
- Transaction follow-up
DLC process
Seven stages, enquiry to underlying transaction.
Enquiry
Provide the required DLC amount and underlying transaction information.
Documentation
Relevant applicant, beneficiary and commercial documentation is submitted.
Structuring
The proposed DLC structure, terms, route and requirements are established.
Review
The relevant parties review the proposed transaction.
Draft
Where applicable, draft instrument wording is provided for review.
Issuance process
The transaction proceeds through the agreed issuance procedure following acceptance of the relevant requirements.
Underlying transaction
The commercial transaction proceeds according to its applicable contractual and documentary conditions.
Information required
What to send with a DLC enquiry.
- Required DLC amount
- Underlying transaction
- Transaction purpose
- Applicant company information
- Beneficiary information
- Preferred issuing route, if applicable
- Receiving bank information
- Required tenor
- Draft wording, if available
- Supporting contract or documentation
Need a Documentary Letter of Credit?
Minimum transaction USD 1 million. Instruments are subject to counterparty acceptance, compliance procedures and institutional approval.