How Long Does Letter of Credit Payment Take?
The steps and time limits between presenting documents and receiving payment under a Letter of Credit.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
Payment timing depends on the credit's type. Under a sight credit, a bank has up to five banking days after presentation to examine documents and then pays if they comply; with deferred payment or acceptance, payment follows at the stated maturity. Courier time, discrepancies and reimbursement steps can add days.
| Examination | Up to five banking days (Art. 14(b)) |
|---|---|
| Sight | Paid once documents are found compliant |
| Deferred / acceptance | Paid at maturity, e.g. 60 days after shipment |
What adds time
- Courier time to the nominated or issuing bank.
- Discrepancies and waiver requests.
- Reimbursement between banks.
- Bank holidays.
How to speed it up
- Present early in the presentation period.
- Use a nominated bank near you.
- Present compliant documents first time.
Sources
- ICC — UCP 600 (Uniform Customs and Practice for Documentary Credits)
- ICC Academy — avoiding Letter of Credit discrepancies
General guidance, not legal advice. Your bank examines documents independently.
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