Revolving Letter of Credit (LC) – Continuous Funding for Ongoing Trade | NNRV Trade Partners
Ensure Secure & Reliable Global Trade Payments | 100+ LC-Secured Projects | Global SWIFT Bank Network Connected
🚀 Streamline Your Supply Chain with a Revolving LC – Secure Recurring Trade Payments
⚠️ Lost Deals Due to Repetitive LC Requests?
A food importer lost a $3M annual supply contract due to delays in LC renewals. NNRV structured a revolving LC with monthly replenishment in 72h—restoring supplier confidence and securing the entire deal.
🧠 « Thanks to NNRV’s Revolving LC, we never missed a shipment. Our suppliers trust us 100%. »
📌 What is a Revolving Letter of Credit (LC)?
A Revolving LC is a self-renewing letter of credit that automatically replenishes after each use, within a defined period and amount. It is designed for businesses that conduct frequent shipments with the same supplier or require periodic funding without issuing new LCs for every transaction.
At NNRV Trade Partners, we provide Revolving Letters of Credit (MT700)—a powerful trade finance tool that ensures continuous funding for businesses engaged in ongoing, repetitive trade transactions. This financial instrument eliminates the hassle of repeated LC applications, optimizing cash flow for both importers and exporters.
✅ Auto-Renewing Credit Facility: No need to reapply for a new LC with each shipment.
✅ Improved Cash Flow Management: Ensures smooth operations for high-frequency trading.
✅ Flexible Structure: Can be time-based (renewing monthly/quarterly) or value-based (replenishing after each payment).
✅ Governed by UCP 600: Fully compliant with ICC regulations for international trade.
🔹 How Does a Revolving LC Work?
1️⃣ LC Issuance: The buyer’s bank issues a Revolving LC (MT700) with a specified renewal clause.
2️⃣ Supplier Ships Goods: The exporter fulfills orders and submits required documents for payment.
3️⃣ Bank Releases Payment: The issuing bank verifies documents and releases funds to the seller.
4️⃣ LC Replenishes: Once the previous transaction is completed, the LC automatically resets for future shipments.
5️⃣ Continuous Trade Cycle: This process repeats within the validity period of the Revolving LC.
🔍 Types of Revolving LCs
1️⃣ Time-Based Revolving LC:
- The LC renews automatically after a fixed period (e.g., every 30, 60, 90 days, etc.).
- Used when shipments occur at set intervals (e.g., monthly/quaterly recurring deliveries).
2️⃣ Value-Based Revolving LC:
- The LC resets once the previous payment is cleared.
- Ideal for businesses that complete multiple shipments within a given credit limit.
📄 Required Documents for Revolving LC Issuance
✔ Proforma Invoice / Sales Contract – Defines trade terms and LC validity.
✔ Commercial Invoice – Specifies transaction details per shipment.
✔ Bill of Lading / Airway Bill – Confirms shipment and title transfer.
✔ Packing List – Outlines shipment contents.
✔ Insurance Certificate – Protects against loss/damage (if applicable).
✔ Inspection Certificate – Ensures product compliance before payment.
🏦 Top Banks & Financial Institutions for Revolving LC (MT700)
We collaborate with leading international banks to facilitate secure Revolving LC issuance for seamless trade transactions.
🔹 Partner Banks for Revolving LC (MT700):
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Min. Transaction | Region |
|---|---|---|---|---|---|---|---|
| Bank of China | BKCHCNBJ | Ideal for high-volume trade flows | Less flexible in contract changes | 0.5% – 7% | 2–6 days | $1M | Asia |
| Standard Chartered (Dubai) | SCBLAEAD | Strong in recurring shipment finance | Documentation-intensive | 0.5% – 7% | 2–6 days | $500K | Global |
| Exim Bank Tanzania | EXTNTZTZ | Good for long-term African supply deals | May require manual follow-ups | 0.5% – 7% | 2–6 days | $250K | Africa |
| MauBank (Mauritius) | MPCBMUMU | Great for offshore continuity-based trade | Limited global presence | 0.5% – 6% | 2–5 days | $250K | Offshore |
| ABC Banking Corporation | ABCKMUMU | Ideal for SMEs with recurring deals | Niche recognition | 0.5% – 6% | 2–5 days | $250K | Offshore |
| Access Bank Kenya | ABNGKENA | Suitable for East Africa & regional sourcing | Smaller SWIFT capacity | 0.5% – 7% | 2–5 days | $250K | Africa |
| Dashen Bank (Ethiopia) | DASHTEAA | Trusted for recurring agriculture/fabric exports | Longer compliance times | 0.5% – 7% | 3–6 days | $250K | Africa |
📩Other revolving LC-compatible banks available upon request.
📢 All transactions comply with ICC & UCP 600 regulations for global trade finance security.
🎯 Why Use a Revolving LC?
| 🔒 Feature | ✅ Benefit |
|---|---|
| Automatic Renewal | No delays or reapplication |
| Ongoing Trade Simplification | Perfect for steady supply deals |
| Buyer-Seller Confidence | Reduced default risk |
| Efficient Documentation | Standardized, cycle-based processing |
| Fully SWIFT MT700 Compliant | Global acceptance guaranteed |
🛠️ Our 5-Step Revolving LC Structuring Process
Submit Trade Contract & Request
We Structure Revolving LC Terms – Time- or value-based
You Approve the Draft
Fees Paid & Bank Issues LC
Trade Cycle Begins – LC auto-renews post-payment or period
💬 “We used to issue 12 LCs per year. Now, one Revolving LC does it all—zero delays.” – Isabelle L., FMCG Importer – France
🔍 Revolving LC vs Standard LC vs Usance LC
| Feature | Standard LC | Usance LC | Revolving LC |
|---|---|---|---|
| One-Time Usage | ✅ Yes | ✅ Yes | ❌ No |
| Deferred Payment | ❌ No | ✅ Yes | ✅ Optional |
| Auto Renewal | ❌ No | ❌ No | ✅ Yes |
| Best For | One-off deals | Cash flow support | Recurring trade |
💡 Why NNRV Trade Partners?
✔️ SWIFT-Connected Structuring Experts
✔️ 100+ Recurring Deals Structured Globally
✔️ Certified Across 40+ Jurisdictions
✔️ Custom Terms & Cycle-Based Designs
✔️ $250K to $100M+ LC Transactions
✔️ Full Documentation Support
💡 Why Choose NNRV Trade Partners for Revolving LC?
🔹 Continuous Trade Finance: No interruptions in your supply chain fowing.
🔹 Increased Supplier Confidence: Guaranteed payments for long-term partnerships assurance.
🔹 Custom LC Issuance: Tailored to fit specific business needs cycle.
🔹 Global Banking Expertise: Decades of experience in structured finance & risk management capability.
🔹 Regulatory Compliance: Fully aligned with UCP 600 & SWIFT standards.
💲 Important Notes
LC fees vary depending on:
Volume and number of cycles
Type of revolving clause (time or value)
Issuing bank policies and country risk
🔹 Contact our team for a tailored quote.
🧠 Real Testimonials
“NNRV structured our 12-month Revolving LC for $1.2M in just 4 days.” B. Kossi, Textile Exporter – Togo
“We now close monthly supply deals under one smart LC.” Marie G., Pharmaceuticals – EU
❓ Frequently Asked Questions
1. Can SMEs use a Revolving LC?
Yes—especially useful for monthly or quarterly contracts.
2. Can we combine value and time clauses?
Yes, hybrid structures are available.
3. How long is a Revolving LC valid for?
Typically 6–12 months, depending on the trade agreement.
4. Can I amend a Revolving LC?
Yes, though terms should be clearly structured upfront.
5. Are Revolving LCs accepted globally?
Absolutely—when governed by UCP 600 and issued via MT700.
🔗 Related Services
📖 Strategic Blog Posts
Why Revolving LCs Are the Future of FMCG Trade
Avoiding Shipment Gaps with Auto-Renewing LC Structures
Revolving LC Case Study: How We Supported 20 Recurring Deals in 12 Months
🚀 Secure Your Revolving LC Today
📩 Book Your Free LC Pre-Diagnosis Now
☎️ Talk to an Expert | 🌍 Trusted in 40+ Countries | ✅ $250K to $100M+ LC Issuance.