LC Types & Alternatives
Sight, usance, confirmed, transferable, back-to-back and standby credits — and when each fits.
- Sight Letter of Credit: How Payment Works
How a sight Letter of Credit pays the exporter once compliant documents are presented.
- Usance Letter of Credit: Deferred Payment Explained
How a usance (deferred payment or acceptance) Letter of Credit works and when the exporter is paid.
- Confirmed vs Unconfirmed Letter of Credit: Which Risk Changes?
How confirmation of a Letter of Credit changes the exporter's risk, and when it is worth paying for.
- Transferable Letter of Credit: Rules and Practical Example
How a transferable Letter of Credit lets an intermediary pass the credit to its supplier, under UCP 600 Article 38.
- Back-to-Back Letter of Credit: Structure and Risks
How a back-to-back Letter of Credit structure works for traders, and the risks compared with a transferable credit.
- Standby Letter of Credit (SBLC): Meaning and Uses
What a standby Letter of Credit is, how it differs from a commercial credit, and which rules apply.
- Irrevocable Letter of Credit: What It Actually Means
What 'irrevocable' means under UCP 600 and what it does — and does not — protect.
- Revolving Letter of Credit for Repeat Shipments
How a revolving Letter of Credit works for regular shipments, and what to check in its terms.
- Red Clause Letter of Credit: Advance Payment Explained
How a red clause Letter of Credit lets the seller draw an advance before shipment, and the buyer's risk.
- Green Clause Letter of Credit: Warehouse-Supported Advances
How a green clause Letter of Credit allows advances against goods stored in a warehouse before shipment.
- Restricted vs Freely Negotiable Letters of Credit
The difference between a credit available with one named bank and one available with any bank.
- Payment, Acceptance and Negotiation Under Letters of Credit
The ways a credit can be made available — sight payment, deferred payment, acceptance and negotiation.
- Import vs Export Letter of Credit: Two Sides of One Transaction
Why an 'import' and 'export' Letter of Credit are the same instrument viewed from buyer and seller sides.
- UPAS Letter of Credit: Usance Payable at Sight Explained
How a usance-payable-at-sight credit lets the seller be paid at sight while the buyer pays later.
- Transferable vs Back-to-Back Letter of Credit: Choosing a Trading Structure
How intermediaries choose between transferring a credit and opening a second, back-to-back credit.
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