Letter of Credit Refinance

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

Letter of Credit Refinance
  1. ①Your company (Supplier) enters into contract with Buyer.
  2. ②Buyer requests L/C issuance to Issuing Bank.
  3. ③L/C Issuing Bank opens L/C.
  4. ④SMBC advises L/C to the Supplier.
  5. ⑤Supplier (Your company) ships the goods and receives Bills of Lading from shipping company).
  6. ⑥Supplier (Your company) delivers shipping documents including B/L to SMBC.
  7. ⑦SMBC presents documents to L/C Issuing Bank.
  8. ⑧Issuing Bank sends acceptance advice to SMBC.
  9. ⑨SMBC makes payment for full invoice value to your company.
  10. ⑩L/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