Payment Letter of Credit (MT700) – Secure Full-Payment
Instrument Upon Compliance Immediate or Deferred Settlement | SWIFT MT700 | UCP 600 Article 6 & 7 Compliant
⚠️ Need Guaranteed Payment for International Trade?
A textile manufacturer in Turkey needed assurance of payment from a buyer in West Africa. NNRV structured a Payment LC, ensuring that once compliant documents were presented, full payment was released—no delays, no excuses.
🧠 “We no longer ship without a Payment LC. With NNRV, our deals close faster and with zero risk.” – Aylin B., Apparel Export Manager
What Is a Payment Letter of Credit?
A Payment LC, also called a Documentary Credit, is a financial instrument issued via SWIFT MT700 by a buyer’s bank that guarantees payment to the seller once pre-defined documents are submitted. It can be payable at sight (immediate) or at maturity (deferred), depending on contract terms.
Structured under UCP 600 Articles 6 and 7, this LC is the most common and legally enforceable form of payment assurance in global trade.
🧠 “Once the documents were approved, funds hit our account in 48h. The Payment LC was perfect.” – Geraldine T., Electronics Exporter – France
Key Benefits of a Payment LC
✅ Full Payment Guarantee – Buyer’s bank pays upon document compliance.
✅ Eliminates Buyer Default Risk – Payment no longer depends on buyer behavior.
✅ Trusted Worldwide – Recognized by over 10,000+ banks in 200+ countries.
✅ UCP 600 Compliant – Legally enforceable terms and timelines.
✅ Customizable Terms – Works for bulk goods, equipment, services, etc.
How It Works
Buyer and Seller Agree on LC Terms in Contract
Buyer’s Bank Issues LC via SWIFT MT700
Seller Ships Goods & Submits Required Documents
Bank Examines Documents for Compliance
Payment Is Released (at sight or maturity)
📂 Documents Required for Payment LC Issuance
📌 Final Sales Contract – With clear LC clause
📌 Proforma or Commercial Invoice – Matching LC value
📌 Transport Documents – Bill of lading, airway bill, etc.
📌 Packing List, Certificate of Origin, Inspection Report – As required
📌 KYC Files – From buyer and seller
🏦 Trusted Banks for Payment LCs (MT700)
| Bank Name | SWIFT Code | Strengths | Considerations | Fee Range | Processing Time | LC Type |
|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | Fast MT700 and global support | Higher fees for sight LCs | 1.5% – 9% | 1–3 days | Sight & Deferred |
| BNP Paribas Paris | BNPAFRPP | Great EU coverage, fast compliance check | May require confirmation for risky zones | 1.2% – 8.3% | 2–4 days | Payment LC (All Types) |
| Credit Agricole | AGRIFRPP | Ideal for agro, pharma, public tenders | Prefers high-volume transactions | 1.3% – 8.9% | 2–5 days | MT700, Irrevocable |
| Standard Commerce USA | STDMDMDMXXX | Efficient payment release post-compliance | Requires exact document matching | 1.1% – 8.5% | 1–3 days | Sight or Usance |
| ABC Bank Mauritius | ABCKMUMU | Perfect for Africa–Asia LC corridors | Limits on low-volume LCs | 1.2% – 8.4% | 2–4 days | Sight & Deferred |
🎯 Why Use a Payment LC?
| 🔒 Feature | ✅ Benefit |
| Bank-Issued Payment Guarantee | Seller gets paid regardless of buyer default |
| UCP 600 Legal Protection | Uniform rules for cross-border enforcement |
| Full SWIFT MT700 Integration | Compatible with all global trade systems |
| Supports All Shipment Modes | Sea, air, road, intermodal |
| Fits Any Sector | Goods, equipment, commodities, services |
🛠️ Our Structuring Process
Review trade contract and define LC type (sight or usance)
Draft MT700 field-by-field with buyer and seller input
Coordinate with issuing bank for SWIFT transmission
Monitor document flow and presentation timelines
Ensure payment execution upon compliance
🔍 Payment LC vs Other Trade Instruments
| Instrument | Trigger | Best Use Case | Risk Coverage |
| Payment LC | Documents Compliant | General trade, bulk, B2B shipments | 🔒🔒🔒🔒🔒 |
| Standby LC (SBLC) | Buyer Default | Backup guarantee only | 🔒🔒🔒 |
| Bank Guarantee | Non-performance | Construction, leasing | 🔒🔒 |
| Open Account | No guarantee | High-trust long-term partners | 🔓 |
Why NNRV?
🔒 MT700 Structuring Expertise Across Sectors
✅ Field-by-Field Draft Support
📄 Global LC Templates With Local Compliance
🌍 Active in 40+ Countries With 60+ Banking Partners
📁 Exporter–Importer–Bank Coordination
💲 Payment LC Fee Range
Issuance fees vary from 1.5% to 9%, depending on:
• LC type (sight or deferred)
• Buyer jurisdiction and sector
• Risk profile and bank preferences
🔹 Request a tailored Payment LC quote now.
🧠 Real Testimonials
“Every shipment now goes under a Payment LC. It changed our risk model.”
– Salif D., West African Agroexporter
“Our bank paid within 2 days after document approval. That’s why we trust NNRV.”
– Teresa G., Equipment Supplier – Spain
📚 What Makes Us Different?
✔️ Payment Structuring for Sight + Usance
✔️ MT700 Format Precision
✔️ Legal, Compliance, and Bank Alignment
📌 From $250K to $100M+ in Payment LCs executed by NNRV
❓ Top 5 FAQ – Answered by Experts
Can I choose sight or deferred LC? Yes. Both are types of Payment LC—decide at contract stage.
What if documents are rejected? We guide you to ensure perfect compliance before submission.
Is this better than SBLC? For confirmed trade shipments—yes. SBLC is for backup only.
Can payment LC be transferable? Yes, if allowed in LC terms.
Can I track MT700 status? Yes. We monitor SWIFT messages and keep you updated.
🔗 Related Services
• Confirmed LC
• Usance LC
• Transferable LC
• MT700 Drafting + Compliance Review
📖 Strategic Blog Posts
• Payment LC vs SBLC: Which Fits Your Deal?
• MT700 Field Breakdown for Payment LCs
• Sight vs Usance LC: Pros & Cons for Traders
🚀 Issue Your Payment LC Now!
No more risk. No more delay. Get paid through a secure Payment LC. Let NNRV structure and monitor your LC from start to finish.
📩 Book a Payment LC Consultation
☎️ Work With LC Structuring Experts | 🌍 SWIFT MT700 | ✅ Sight & Usance Options