Revolving Letter of Credit for Repeat Shipments
How a revolving Letter of Credit works for regular shipments, and what to check in its terms.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
A revolving Letter of Credit reinstates its amount after each drawing or period, so one credit can cover a series of shipments. It may revolve by time (e.g. USD 100,000 per month) or by value, and can be cumulative (unused amounts carry forward) or non-cumulative. UCP 600 has no specific article; the credit's own terms set the rules.
| Used for | Regular repeat shipments |
|---|---|
| Revolves by | Time or value |
| Key term | Cumulative or non-cumulative |
What to check
- Amount per period and total maximum.
- Whether reinstatement is automatic or needs notice.
- Cumulative or non-cumulative.
- Expiry and per-shipment deadlines.
Benefits
- Fewer applications and fees.
- Stable payment security for long contracts.
Sources
General guidance, not legal advice. Your bank examines documents independently.
Related guides
Review the LC terms before acceptance
Free snapshot in under a minute. No account needed.
Upload your Letter of Credit
PDF · up to 25 MB