Why Letter of Credit Payments Get Delayed
The most common reasons a Letter of Credit payment is delayed, and how exporters can prevent them.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
Most Letter of Credit payment delays come from discrepant documents: the bank refuses or holds them, and payment waits for corrections or the applicant's waiver. Other causes include late courier delivery, presenting to a bank that is not nominated, sanctions or compliance checks, and reimbursement issues between banks.
| Main cause | Discrepant documents |
|---|---|
| Waiver | Depends on the applicant |
| Prevention | Check documents before presenting |
Common causes
- Discrepancies leading to refusal or waiver requests.
- Documents sent late or to the wrong bank.
- Compliance and sanctions checks.
- Missing originals or signatures.
- Bank holidays in either country.
Prevention
- Check every document against the credit before presenting.
- Present early in the period.
- Confirm the nominated bank and address.
- Keep proof of delivery.
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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