Deferred Letter of Credit (MT700) – Pay Later, Trade Now
🚀 The Best Deferred Letter of Credit (LC) Solutions – Secure, Flexible & Globally Trusted
⚠️ Have You Lost a Deal Due to Lack of Payment Guarantees?
Recently, an exporter lost $500,000 because no LC was in place. At NNRV, we structured a tailored LC in 48h, saving their next $3M deal. Don’t trade on blind trust. Secure every deal with confidence.
🧠 « Without NNRV’s LC, I would’ve lost my biggest contract. Their team is responsive and knows the game. »
📌 What is a Deferred Letter of Credit (Deferred LC)?
A Deferred Letter of Credit (MT700), also known as a Usance LC, is a trade finance instrument that allows the buyer to defer payment for a specified period after receiving goods. This gives importers additional time to generate revenue before making payments, while ensuring sellers receive guaranteed payment at maturity from the issuing bank.
At NNRV Trade Partners, we provide Deferred Letters of Credit (Deferred LC, MT700) to ensure safe, structured, and risk-free international transactions. Our deferred payment solutions allow buyers to receive goods immediately while delaying payment until a later agreed date—ensuring optimal cash flow management and a secure trade environment for both parties.
✅ Deferred Payment Flexibility: Pay after 30, 60, 90, or 180 days.
✅ Secure Transactions: Guaranteed payment by a top-tier issuing bank.
✅ Stronger Trade Relationships: Gives buyers financial flexibility while assuring sellers.
✅ UCP 600 Compliance: Governed by global trade finance regulations.
🧠 “Thanks to NNRV’s Deferred LC, we managed to import €3M worth of stock and only paid 90 days later. That saved our quarter.” — Lucie G., Consumer Goods – EU
✅ Key Benefits of Deferred LC
✔️ Deferred Payment Flexibility – Pay in 30, 60, 90, or 180 days
✔️ Immediate Goods Delivery – Get products before payment is due
✔️ Improved Cash Flow – Sell goods before paying suppliers
✔️ Secure Transactions – Payment guaranteed by issuing bank
✔️ UCP 600 Compliant – Backed by international banking rules
✔️ Enhanced Trade Relationships – Sellers gain confidence, buyers gain time
🔄 How Does a Deferred LC Work?
1️⃣ Issuance of Deferred LC: The buyer’s bank issues a Deferred LC (MT700) with agreed payment terms (e.g., 60 or 90 days after shipment).
2️⃣ Goods Shipment: The seller ships the goods and submits the required documents.
3️⃣ Document Verification: The issuing bank verifies compliance with LC terms.
4️⃣ Deferred Payment Period Begins: The buyer receives goods but pays only after the agreed credit period.
5️⃣ Payment at Maturity: On the agreed date, the issuing bank releases payment to the seller.
📄 Required Documents for Deferred LC Issuance
To initiate a Deferred LC, please provide:
✔ Proforma Invoice / Sales Contract – Defines trade terms.
✔ Bill of Lading / Airway Bill – Confirms shipment.
✔ Commercial Invoice – Details product specifications and transaction value.
✔ Insurance Certificate – Covers risk (if applicable).
✔ Packing List – Provides quantity, weight, and packaging details.
✔ Certificate of Origin – Confirms production location.
✔ Inspection Certificate – Ensures compliance with contract quality standards.
🏦 Top Banks & Financial Institutions for Deferred LC (MT700)
We collaborate with leading international banks to ensure secure and seamless Deferred LC issuance, ensuring flexible tenors and trusted processing..
🔹Below is a detailed table for reference of our top Banks Issuing Deferred LC (MT700):
Specialized Deferred Payment LC Issuing Banks for Extended Payment Terms
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Min. Transaction | LC Types |
|---|---|---|---|---|---|---|---|
| Bank of China | BKCHCNBJ | State-owned, strong China network | Limited flexibility for emerging markets | 0.5% – 7% | 2–6 days | $1M | Sight, Deferred, Transferable |
| Standard Chartered (Dubai) | SCBLAEAD | Global reach, Middle East/Asia trade | Moderate fees | 0.5% – 7% | 2–6 days | $500K | Sight, Deferred, Confirmed |
| Access Bank Kenya | ABNGKENA | Strong East African footprint | Local market limitations | 0.5% – 7% | 2–5 days | $250K | Sight, Deferred |
| Dashen Bank (Ethiopia) | DASHTEAA | Preferred for East Africa deals | Longer document processing | 0.5% – 7% | 3–6 days | $250K | Sight, Deferred |
| Rank | Bank Name | SWIFT Code | Country | LC Types | Amount Range | Term | Issuance Fee | Processing Time | Special Features |
|---|---|---|---|---|---|---|---|---|---|
| TIER 1: PREMIUM BANKS (AAA/AA RATED) | |||||||||
| 1 | HSBC Hong Kong | HSBCHKHHHKH | Hong Kong | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Verbiage fixe, sight only |
| 2 | Maybank Berhad | MBBESGS2 | Singapore | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Verbiage fixe, sight only |
| 3 | BNP Paribas | BNPAHKHH | Hong Kong | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Sight only |
| 4 | Crédit Agricole CIB | AGRIMQMXXXX | France | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | A-rated, LC strict |
| 5 | Alior Bank SA | ALBPPLPWXXX | Poland | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | A-rated, LC strict |
| 6 | Indian Bank | IDIBINBBXXX | India | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | A-rated |
| 13 | DBS Bank | DHBKHKHH | Hong Kong | Deferred Payment LC | – | 90-365 days | 4% – 6% | – | Sight & Usance |
| 35 | Asia-Invest Bank | – | – | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 37 | Israel Discount Bank (IDB) | IDBYUS33 | Israel/USA | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 38 | Caixa Central de Crédito Agrícola | – | Portugal | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 39 | Banca Nazionale del Lavoro | BNLIITRRALX | Italy | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 46 | HSBC Indonesia | – | Indonesia | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 58 | China Construction Bank | CCBQHKAX | Hong Kong | Deferred Payment LC | – | – | – | – | SVG |
| 59 | New York Community Bank | NYBCUS33 | USA | Deferred Payment LC | – | – | – | – | SVG |
| 60 | Valley National Bank | LUMIUS3N | USA | Deferred Payment LC | – | – | – | – | SVG |
| 61 | Artigiancassa SPA | ARTCITR1XXX | Italy | Deferred Payment LC | – | – | – | – | SVG |
| 62 | Banca Nazionale del Lavoro SPA | BNLIITRRALX | Italy | Deferred Payment LC | – | – | – | – | SVG |
| 63 | Asia-Invest Bank JSC | ASIJRUMMXXX | Russia | Deferred Payment LC | – | – | – | – | SVG |
| 65 | Israel Discount Bank | IDBYUS33 | USA/Israel | Deferred Payment LC | – | – | – | – | SVG |
| 76 | DBS Bank (Hong Kong) | DHBKHKHHXXX | Hong Kong | Deferred Payment LC | $250K – $1M | 90-365 days | 1% – 4% | – | Verbiage fixe, sight only |
| TIER 2: STRONG COMMERCIAL BANKS (A/BBB RATED) | |||||||||
| 9 | UCO Bank | UCBKHKHHXXX | Hong Kong | Deferred Payment LC | – | 90-365 days | 4% – 8% | – | DLC uniquement, verbiage strict |
| 10 | Dah Sing Bank | DSBAHKHHXXX | Hong Kong | Deferred Payment LC | – | 90-365 days | 5% – 6% | – | DLC uniquement, verbiage strict |
| 12 | CTBC Bank | CTBKHKHHXXX | Hong Kong | Deferred Payment LC | – | 90-365 days | 4% – 6% | – | Sight & Usance |
| 14 | Dushanbe City Bank | LCMDTJ22 | Tajikistan | Deferred Payment LC | – | 90-365 days | 3% – 7% | – | Tous instruments |
| 15 | Asia Nexus Investment Bank | AINEMY22XXX | Malaysia | Deferred Payment LC | – | 90-365 days | 3% – 7% | – | Tous instruments |
| 17 | Credit Foncier Uganda | CDFOUGKA | Uganda | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Tous instruments |
| 18 | Credit Foncier Germany | CFEGDE82 | Germany | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Tous instruments |
| 21 | Sapelle Intl Bank | GNERLRLMXXX | Liberia | Deferred Payment LC | – | 90-365 days | 3% – 7% | – | Tous instruments |
| 23 | Point Bank | POITGB21 | UK | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Tous instruments |
| 24 | Oxford Intl Bank | – | USA | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Instrument via PDF |
| 45 | Standard Chartered Bank (Indonesia) | – | Indonesia | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 75 | Standard Chartered Bank (Hong Kong) | SCBLHKHHXXX | Hong Kong | Deferred Payment LC | $250K – $1M | 90-365 days | 1% – 4% | – | Verbiage fixe, sight only |
| 77 | Dah Sing Bank | DSBAHKHHXXX | Hong Kong | Deferred Payment LC | $250K – $1M | 90-365 days | 5% – 6% | – | DLC uniquement |
| 79 | Sapelle Intl Bank | GNERLRLMXXX | Liberia | Deferred Payment LC | $250K – $50M | 90-365 days | 3% – 7% | – | Swift only, no email |
| 80 | Dushanbe City Bank | LCMDTJ22XXX | Tajikistan | Deferred Payment LC | $250K – $50M | 90-365 days | 3% – 7% | – | Swift only, no email |
| 84 | Credit Foncier Germany | CFEGDE82XXX | Germany | Deferred Payment LC | $250K – $50M | 90-365 days | 1% – 4% | – | Confirmation 2x possible |
| 87 | Point Bank UK | POITGB21XXX | UK | Deferred Payment LC | $250K – $50M | 90-365 days | 1% – 4% | – | LC flexible |
| TIER 3: BANQUES NON NOTÉES MAIS FIABLES (TFC/MTF) | |||||||||
| 16 | ACE Investment Bank | AIBMMYKL | Malaysia | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Tous instruments |
| 19 | Standard Commerce Bank | STDMDMDXXX | USA/RD | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Tous instruments |
| 20 | Unibanque | UNBQGB22 | UK | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Tous instruments |
| 22 | United Bank for Investment | UNTVIQBAXXX | Iraq | Deferred Payment LC | – | 90-365 days | 3% – 7% | – | Tous instruments |
| 29 | United Securities Trust | USTSCH21 | Bahamas | Deferred Payment LC | – | 90-365 days | – | – | Via MTF |
| 33 | UBB Investment Bank | UBBIMY22 | Malaysia | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 66 | UBB Investment Bank | UBBIMY22 | Malaysia | Deferred Payment LC | – | – | – | – | MTF Providers |
| 78 | Indian Overseas Bank (Singapore) | IOBAHKHHXXX | Singapore | Deferred Payment LC | $250K – $5M | 90-365 days | 5% – 6% | – | Sight/Usance LC |
| 81 | Asia Pacific Investment Bank | ASPMMYKLXXX | Malaysia | Deferred Payment LC | $250K – $50M | 90-365 days | 1% – 4% | – | Confirmation 2x possible |
| 82 | UBB Investment Bank | UBBIMY22XXX | Malaysia | Deferred Payment LC | $250K – $50M | 90-365 days | 1% – 4% | – | Confirmation possible |
| 83 | ACE Investment Bank | AIBMMYKLXXX | Malaysia | Deferred Payment LC | $250K – $50M | 90-365 days | 1% – 4% | – | Livraison email & SWIFT |
| 85 | Standard Commerce Bank | STDMDMDXXX | USA | Deferred Payment LC | $250K – $50M | 90-365 days | 1% – 4% | – | Livrable swift/email/papier |
| 86 | Amanah Islamic Bank Philippines | AIIPPHM1XXX | Philippines | Deferred Payment LC | $250K – $50M | 90-365 days | 1% – 4% | – | LC uniquement |
| TIER 4: BANQUES OFFSHORE / FLEXIBLES | |||||||||
| 7 | Credito Agricole Italiano | CRPPIT2PXXX | Italy | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | A-rated |
| 8 | Credito Valtellinese SPA | BPCVIT2SXXX | Italy | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | A-rated |
| 34 | Golden Touch Investment Bank | – | – | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 36 | International Commercial Bank (South Sudan) | ICOCSSJBXXX | South Sudan | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 40 | Citizens Bank Guyana | – | Guyana | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 41 | Republic Bank | – | Guyana | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 42 | Scotiabank | – | Guyana | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 43 | Standard Bank (Comores) | – | Comoros | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 44 | Slovenská Sporiteľňa | – | Slovakia | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 47 | Exim Bank Tanzania | EXTNTZTZ | Tanzania | Deferred Payment LC | $250K – $100M | 90-365 days | – | – | SVG/EEB |
| 48 | Mauritius Commercial Bank | MCBLMUMU | Mauritius | Deferred Payment LC | $250K – $100M | 90-365 days | – | – | SVG/EEB |
| 49 | ABC Banking Corporation | ABCKMUMU | Mauritius | Deferred Payment LC | $250K – $100M | 90-365 days | – | – | SVG/EEB |
| 50 | Maubank Ltd | MPCBMUMU | Mauritius | Deferred Payment LC | $250K – $100M | 90-365 days | – | – | Flexible/EEB |
| 51 | Aktif Bank | CAYTTRIS | Turkey | Deferred Payment LC | $250K – $100M | 90-365 days | – | – | Conditions sur demande/EEB |
| 52 | United Bank for Africa Mozambique | UNAFMZMA | Mozambique | Deferred Payment LC | $250K – $100M | 90-365 days | – | – | Via SVG confirmé/EEB |
| 64 | International Commercial Bank (South Sudan) | ICOCSSJBXXX | South Sudan | Deferred Payment LC | – | – | – | – | SVG |
| 67 | Golden Touch Investment Bank | GTIVMY2LXXX | Malaysia | Deferred Payment LC | – | – | – | – | SVG |
| 88 | Euro Exim Bank | EULULCL1XXX | St. Lucia | Deferred Payment LC | $100K – $100M | 90-365 days | 4% – 9% | – | Sans garantie ni dépôt |
| TIER 5: AUTRES BANQUES RELAIS / SECONDAIRES | |||||||||
| 11 | Indian Overseas Bank | IOBAHKHHXXX | Hong Kong | Deferred Payment LC | – | 90-365 days | 5% – 6% | – | DLC uniquement, verbiage strict |
| 24 | Oxford Intl Bank | – | USA | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Instrument via PDF |
| 25 | Tabarak Investment Capital | TIBIAEADXXX | Dubai | Deferred Payment LC | – | 90-365 days | 0.25% – 2% | – | Livraison email & SWIFT |
| 26 | Digital Commercial Bank | – | Dubai | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | SBLC > $25B |
| 27 | Asia Pacific Investment Bank | ASPMMYKL | Malaysia | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Flexible |
| 28 | Merchant International Bank | MCGONZ21/MCGPUS51 | UK/USA | Deferred Payment LC | – | 90-365 days | 1% – 4% | – | Instrument papier |
| 30 | PG Asia Investment Bank | AINEMY22 | Malaysia | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 31 | Soleil Bank | SCGRUS33 | USA | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 32 | IMB Ltd | – | St. Kitts & Nevis | Deferred Payment LC | – | 90-365 days | – | – | SVG |
| 53 | Banco Micro Capital | – | Tanzania/Global | Deferred Payment LC | – | – | – | – | YGC Profile |
| 54 | Union Banco Credit | – | Zambia/Global | Deferred Payment LC | – | – | – | – | YGC Profile |
| 55 | UOB Global Capital | – | UK/Global | Deferred Payment LC | – | – | – | – | YGC Profile |
| 56 | Acumen Bank | – | Comoros | Deferred Payment LC | – | – | – | – | YGC Profile |
| 57 | United Trust Bank | – | UK/UAE | Deferred Payment LC | – | – | – | – | YGC Profile |
| 66 | UBB Investment Bank | UBBIMY22 | Malaysia | Deferred Payment LC | – | – | – | – | MTF Providers |
📩 Other banks available upon request depending on your region or transaction volume.
DEFERRED PAYMENT LC ADVANTAGES
- Extended Payment Terms: Significantly longer payment deferral compared to standard trade options
- No Draft/Bill of Exchange: Simpler structure than Usance LC (no acceptance/negotiation of drafts)
- Direct Bank Obligation: Bank undertakes to pay at maturity without negotiable instruments
- Working Capital Optimization: Maximizes importer cash flow while securing exporter payment
- Project Financing Alignment: Ideal for capital projects with delayed revenue generation
- Seasonal Business Support: Matches payment timing with cyclical business revenue streams
- Competitive Edge: Enables offering extended terms to buyers or obtaining from suppliers
- Capital Equipment Acquisition: Facilitates major purchases with payment aligned to implementation
DEFERRED PAYMENT LC SPECIALIZED STRUCTURES
| Structure Type | Description | Best For | Key Benefits |
|---|---|---|---|
| Standard Deferred Payment | Single payment at fixed future date | General trade, mid-value goods | Simplicity, lower fees |
| Installment Payment | Multiple scheduled payments over time | Capital equipment, major projects | Matches payment to project milestones |
| Transferable Deferred | Can be transferred to suppliers/manufacturers | Trading companies, intermediaries | Allows payment term pass-through to suppliers |
| Confirmed Deferred | Secondary bank adds guarantee | High-risk countries, new relationships | Reduces country/bank risk for exporter |
| Green/Sustainable | Special terms for environmental projects | Renewable energy, sustainable trade | Preferential rates, extended terms for green products |
| Supplier Finance Enabled | Integration with supplier financing programs | Supply chain financing | Early payment options for suppliers |
| Multi-Drawing | Multiple shipments against single LC | Ongoing supply relationships | Reduced documentation, consistent terms |
| Project-Linked | Terms aligned with project implementation | Infrastructure, construction | Payment schedule matched to project phases |
| Required Documents | Purpose | Notes |
|---|---|---|
| Commercial Invoice | Details goods and prices | Must match LC terms exactly |
| Bill of Lading/AWB | Proof of shipment | Clean B/L required, carrier-issued |
| Packing List | Itemizes shipment contents | Weight/dimensions must match B/L |
| Certificate of Origin | Confirms product origin | Often required for customs/duties |
| Inspection Certificate | Verifies quality/quantity | When specified in LC terms |
| Insurance Document | Covers transit risks | Required for CIF shipments |
| Installation Certificate | Confirms equipment setup | For capital equipment/machinery |
| Completion Certificate | Verifies project milestones | For project-linked structures |
| Technical Specifications | Confirms product standards | For industrial/specialized goods |
| Environmental Compliance | Verifies sustainability standards | For green/sustainable structures |
DEFERRED PAYMENT LC ISSUANCE PROCESS
- Comprehensive Application: Submit detailed application with deferred payment specifics
- Enhanced Due Diligence: Complete thorough credit assessment and risk evaluation
- Term Sheet Negotiation: Finalize payment schedules, conditions, and special requirements
- Structured LC Draft: Review and approve comprehensive LC text with payment obligations
- Fee Payment & Collateral: Arrange fees and any required security/collateral
- SWIFT Issuance: LC transmitted via secure MT700 message with special payment terms
- Advising/Confirmation: Receiving bank advises and potentially confirms the credit
- Maturity Management: Systematic tracking of payment obligation dates
- Compliance Verification: Thorough document checking against LC conditions
- Scheduled Payment Execution: Automatic payment at deferred maturity date(s)
DEFERRED PAYMENT LC TERM OPTIONS
| Term Length | Typical Usage | Industries | Financing Options |
|---|---|---|---|
| 120-180 Days | Extended manufacturing cycles | Consumer goods, electronics | Discounting, forfaiting |
| 181 |
DEFERRED PAYMENT LC TERM OPTIONS
| Term Length | Typical Usage | Industries | Financing Options |
|---|---|---|---|
| 181-270 Days | Seasonal demand cycles | Agriculture, fashion | Inventory financing, seasonal loans |
| 271-365 Days | Significant capital projects | Construction, infrastructure | Project finance, bridge loans |
| 366-730 Days | Complex manufacturing/implementation | Heavy machinery, industrial plants | Long-term loans, capital leasing |
| 731 Days+ | Long-term infrastructure/development | Public works, energy | Project bonds, syndicated loans |
DEFERRED PAYMENT LC PRICING STRUCTURE
- Issuance Fee: Typically 0.25% – 2% of LC amount, covers administrative costs
- Maturity Interest: Calculated based on deferred period and risk profile
- Documentary Credit Fee: Charged for LC confirmation, typically 0.25% – 1%
- Discounting Fees: If discounting option is utilized, additional fees may apply
- Commitment Fees: For long-term LCs, a fee may be charged on undrawn portions
- Amendment Fees: Charges for any changes to the original LC terms
- Collateral Costs: Costs associated with securing the LC, if applicable
DEFERRED PAYMENT LC RISK MITIGATION
| Risk Type | Mitigation Strategy | Example |
|---|---|---|
| Credit Risk | Obtain financials, credit reports | Regular credit assessments |
| Country Risk | Use confirmed LCs | Secondary bank guarantee |
| Documentary Risk | Thorough document checking | Strict compliance verification |
| Market Risk | Hedge currency/interest rate exposure | Forward contracts, swaps |
| Operational Risk | Establish robust internal controls | Regular audits, staff training |
| Legal Risk | Ensure compliance with local laws | Regular legal reviews |
DEFERRED PAYMENT LC COMPLIANCE
- Anti-Money Laundering (AML): Strict adherence to AML regulations
- Know Your Customer (KYC): Comprehensive KYC procedures
- Sanctions Screening: Regular checks against sanctions lists
- Environmental Regulations: Compliance with green/sustainable standards
- Documentary Compliance: Ensuring all documents meet LC terms
- Reporting Requirements: Adherence to local and international reporting standards
DEFERRED PAYMENT LC CASE STUDIES
Case Study 1: Capital Equipment Purchase
Background: A manufacturing company needed to upgrade its machinery to increase production capacity.
Solution: A Deferred Payment LC with a 365-day term allowed the company to pay for the equipment over a year, aligning payments with increased revenue.
Outcome: The company successfully upgraded its machinery, increasing production by 30% and paying for the equipment without straining cash flow.
Case Study 2: Infrastructure Project
Background: A construction firm won a contract for a major infrastructure project with delayed revenue generation.
Solution: A Deferred Payment LC with a 730-day term and multiple installment payments matched to project milestones.
Outcome: The firm completed the project on time, with payments aligned to project phases, ensuring smooth cash flow management.
Case Study 3: Seasonal Business
Background: An agricultural company needed financing for seasonal crops, with revenue generated post-harvest.
Solution: A Deferred Payment LC with a 270-day term allowed the company to finance crop production and pay after harvest.
Outcome: The company successfully managed its seasonal cash flow, ensuring timely payments and maximizing profitability.
DEFERRED PAYMENT LC TRENDS
- Digital Transformation: Increasing use of digital platforms for LC issuance and management
- Green Financing: Growing demand for sustainable trade finance solutions
- Supply Chain Integration: Integration of LCs with supply chain financing programs
- Regulatory Compliance: Enhanced focus on compliance with international trade regulations
- Risk Management: Advanced risk mitigation strategies to protect against market volatility
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Min. Transaction | LC Types |
|---|---|---|---|---|---|---|---|
| Bank of China | BKCHCNBJ | State-owned, strong China network | Limited flexibility for emerging markets | 0.5% – 7% | 2–6 days | $1M | Sight, Deferred, Transferable |
| Standard Chartered (Dubai) | SCBLAEAD | Global reach, Middle East/Asia trade | Moderate fees | 0.5% – 7% | 2–6 days | $500K | Sight, Deferred, Confirmed |
| Exim Bank Tanzania | EXTNTZTZ | Reliable African trade partner | Slower processing times | 0.5% – 7% | 2–6 days | $250K | Sight, Deferred |
| MauBank (Mauritius) | MPCBMUMU | Favorable offshore structuring | Limited global brand | 0.5% – 6% | 2–5 days | $250K | Sight, Deferred |
| ABC Banking Corporation | ABCKMUMU | Tailored LC services for SME traders | Niche offshore market | 0.5% – 6% | 2–5 days | $250K | Sight, Deferred |
| Access Bank Kenya | ABNGKENA | Strong East African footprint | Local market limitations | 0.5% – 7% | 2–5 days | $250K | Sight, Deferred |
| Dashen Bank (Ethiopia) | DASHTEAA | Preferred for East Africa deals | Longer document processing | 0.5% – 7% | 3–6 days | $250K | Sight, Deferred |
📩 Other banks available upon request depending on your region or transaction volume.
📢 All transactions comply with ICC & UCP 600 regulations for global trade finance security.
🎯 Why Use a Deferred LC?
| 🔒 Feature | ✅ Benefit |
|---|---|
| Deferred Payment | Flexibility for buyers |
| Immediate Goods Receipt | Secure supplier trust |
| Improved Liquidity | Cash flow preserved |
| Regulatory Compliance | Issued under UCP 600 |
| Bank Guarantee | Risk covered for seller |
🛠️ Our 5-Step LC Issuance Process
Submit Required Documents – Including invoices, contracts, company credentials
LC Structuring & Draft – Tailored credit terms based on your trade flow
Approval & Compliance Review – You validate the LC structure
Payment of Issuance Fees – Fees aligned with value and term
LC Issued via SWIFT MT700 – Official transmission and LC activation
💬 “We structured a €2.5M Deferred LC through NNRV with 90-day terms. Smooth, transparent, and efficient.” – H. Lamine, Industrial Components – UAE
🔍 Deferred LC vs Other Trade Finance Instruments
| Instrument | Trigger | Best For | Seller Protection |
|---|---|---|---|
| Deferred LC | Compliant Documents | Flexible, delayed payments | 🔒🔒🔒🔒 |
| Sight LC | Immediate Payment | Perishables or urgent trades | 🔒🔒🔒🔒🔒 |
| SBLC | Buyer Default | Backup for high-risk buyers | 🔒🔒 |
| Bank Guarantee | Contract Breach | Projects, leasing, tenders | 🔒🔒🔒 |
💡 Why Choose NNRV Trade Partners for Deferred LC?
✔️ 100% SWIFT-Based MT700 Issuance
✔️ Deferred Terms of 30 to 180 Days
✔️ Access to Trusted Global Banks
✔️ ICC-Verified LC Structuring
✔️ Tailored Support in 40+ Jurisdictions
✔️ “Accepted or Refunded” Guarantee
📌 From $1M to $100M+ LC deals structured with precision
💡 Why Choose NNRV Trade Partners for Deferred LC?
🔹 Flexible Payment Terms: Deferred payment periods of 30-180 days.
🔹 Secure Trade Finance Solutions: Transactions backed by top-tier banks.
🔹 Custom LC Issuance: Tailored trade finance structures.
🔹 Global Expertise: Decades of experience in structured finance & risk mitigation.
🔹 Regulatory Compliance: Fully aligned with UCP 600 & SWIFT standards.
💲 Important Notes on Fees
LC issuance costs depend on:
Value of transaction
Payment deferral period
Bank compliance & internal policies
🔹 Speak with our team to calculate your exact fees based on LC structure.
🧠 Real Testimonials
“We deferred $1.5M in payments and gained a 60-day buffer thanks to NNRV.”
M. Ndoye, Timber Exporter – Gabon
“Our first LC with NNRV was a Deferred one. Delivery went smoothly, and our payment terms helped scale operations.”
S. Rami, Electronics – Morocco
“Structured, transparent, fast. That’s how global trade should work.”
Chantal B., Pharma – Belgium
❓ Top 5 FAQs – Answered by Experts
1. Can I get a 180-day deferred term?
Yes, depending on your bank and documentation. 30–180 days are standard.
2. Is the payment guaranteed at maturity?
Yes, payment is guaranteed by the issuing bank as long as documents comply.
3. What happens if my documents are incomplete?
Banks may delay payment. We pre-verify all documents to prevent this.
4. Can Deferred LCs be issued for small businesses?
Yes, we support SMEs with structured LCs from $250K and up.
5. Is the Deferred LC globally accepted?
Yes – when issued under UCP 600 and transmitted via SWIFT MT700.
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