Letter of Credit Refinance

To pay beneficiary full LC proceeds upfront and finance LC issuing bank

Letter of Credit Refinance
  1. Your company (Supplier) enters into contract with Buyer.
  2. Buyer requests L/C issuance to Issuing Bank.
  3. L/C Issuing Bank opens L/C.
  4. SMBC advises L/C to the Supplier.
  5. Supplier (Your company) ships the goods and receives Bills of Lading from shipping company).
  6. Supplier (Your company) delivers shipping documents including B/L to SMBC.
  7. SMBC presents documents to L/C Issuing Bank.
  8. Issuing Bank sends acceptance advice to SMBC.
  9. SMBC makes payment for full invoice value to your company.
  10. L/C Issuing Bank makes payment for principal and interest at maturity.
  • Supplier gets paid early (without recourse) based on L/C and acceptance from Issuing Bank
  • Help Buyer to secure cheaper funding