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🔄 Finance Product

Letter of Credit (LC) Discounting

Bank-backed assurance that turns an LC into ready cash.

No collateralTrade finance
Loan Amount / Ticket size
Linked to the LC value
Free eligibility assessment · Advisor calls within 4 business hours
Check Eligibility →
At a Glance

Letter of Credit (LC) Discounting — Key Facts

Loan Amount / Ticket size
Linked to the LC value
Interest Rate / Cost
Priced by deal size & buyer\'s bank profile
Collateral
Not required (backed by the LC)
Tenure
Matches the LC usance period
Turnaround Time
Fast, on document compliance
Best For
Sellers wanting bank-backed payment certainty
Overview

What It Is & How It Works

Non-fund-based facility that lets a seller access working capital against a Letter of Credit issued by the buyer\'s bank --- reducing payment risk and confirming the buyer\'s creditworthiness. LCs can also be transferable to a secondary beneficiary.

How It Works

The Process, Visualised

How LC discounting worksBuyer's Bank LCPayment assuranceYou Present LCWith documentsFunds AdvancedAgainst the LCBank SettlesOn maturity

A non-fund-based facility that lets you access working capital against a Letter of Credit issued by your buyer's bank.

Eligibility Criteria

  • Seller with a valid Letter of Credit from the buyer\'s bank
  • LC terms and documents in order (UCP-compliant)
  • Genuine underlying trade transaction
  • Valid business registration and KYC
  • Acceptable issuing-bank / buyer profile

Documents Required

  • Original Letter of Credit and any amendments
  • Shipping / dispatch and title documents
  • Commercial invoice and packing list
  • Business registration (GST / IEC where applicable)
  • KYC of the business and promoters
Process

From Application to Disbursal

1

Apply Online

Tell us your requirement in 2 minutes.

2

Eligibility Check

Free assessment within 48 hours.

3

File Preparation

We build and submit the complete bank-ready file.

4

Sanction & Disbursal

We follow through to money-in-account.

Who It's For

Common Applicants

Auto Components
OEM Suppliers
Engineering
Exporters & Importers
Manufacturing
Trading
Get Started

Apply for Letter of Credit (LC) Discounting

Fill this short form — our advisor calls within 4 business hours. Or use the full application →

✓ Free assessment · Documents stored securely · We call within 4 business hours

FAQ

Frequently Asked Questions

It lets you draw working capital against a Letter of Credit before the credit period ends --- so you get paid sooner while the buyer keeps their agreed terms.
No. The facility is backed by the LC itself and the issuing bank\'s undertaking, so separate fixed-asset collateral is not required.
Pricing depends on the transaction size and the credit profile of the buyer and their issuing bank --- a stronger bank means a finer rate.
Yes, a transferable LC can be assigned to a secondary beneficiary, which is useful when you are sourcing goods to fulfil the order.
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Other Finance Products

Apply for Letter of Credit (LC) Discounting

Free eligibility assessment · Advisor calls within 4 business hours · Documents stored securely

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