Letter of Credit & Trade Finance Advisory
Understand the terms. Identify documentary requirements. Reduce avoidable discrepancies.
Important
Essoria provides consultancy, document-review and coordination support. Banking functions, LC issuance, advising, confirmation, negotiation, payment and final authentication are performed by the relevant authorised financial institutions.
LC and trade-finance services
Support for importers and exporters on both sides of a documentary credit — before it is issued, before you ship, and before you present.
LC Review
Key terms and conditions of the credit reviewed in detail.
Documentary Requirements
Every document required for presentation identified and listed.
Shipment Condition Review
Deadlines, ports and Incoterms checked against your shipment plan.
Discrepancy Identification
Potential documentary inconsistencies identified before you submit.
LC Amendment Coordination
Requested changes to the credit communicated through the parties.
Trade Finance Advisory
Trade-finance options explained and coordinated with financial institutions.
What we look at in a documentary credit
Credits issued over SWIFT follow the MT700 format. We go through it field by field against your contract and your real shipment plan.
- 31D
Expiry date and place
Is there enough time between shipment and expiry, and where must documents be presented?
- 44C
Latest shipment date
Can the goods realistically be produced, inspected and loaded by this date?
- 46A
Documents required
Can every document be obtained, from the issuer named, in the form described?
- 47A
Additional conditions
Are there conditions that are unclear, contradictory or outside the seller's control?
- 48
Presentation period
Is the window after shipment long enough to collect and present the documents?
Where presentations commonly go wrong
Banks examine documents against the terms of the credit and the applicable rules, such as UCP 600. A pre-presentation check helps identify inconsistencies while they can still be corrected.
- Late shipment against field 44C
- Late presentation or presentation after expiry
- Goods description that differs from the credit
- Transport document not clean, unsigned or missing endorsements
- Insurance cover below the required value or wrong risks
- Inconsistent data between invoice, packing list and transport document
- Certificates issued by a party other than the one named
- Drawing amount exceeding the credit or tolerance
How an LC engagement runs
Share
Send the contract or PO and the LC draft, or the issued credit.
Review
Field-by-field review against contract and shipment plan.
Advise
A written note of risks, unclear terms and suggested changes.
Amend
Support communicating amendment requests through the parties.
Pre-check
Document checklist and pre-presentation consistency check.
Have an LC draft on your desk?
Send it for review before it is issued or before you ship.