Indivisible Letter of Credit (MT700) – One-Time, All-or-Nothing LC for Single Payment Deals
Full Amount in One Go | No Partial Drawdowns | SWIFT MT700 + UCP 600
⚠️ Want to Ensure That Your LC Can’t Be Split or Drawn Down in Parts?
A government buyer in North Africa was procuring €15M worth of defense equipment. To keep control and avoid partial delivery, NNRV structured an Indivisible LC. The seller had to ship 100% before receiving any payment—ensuring full compliance.
🧠 “We wanted one shipment, one document set, one payment. The indivisible LC gave us full assurance.” – Nour M., State Procurement Officer
What Is an Indivisible Letter of Credit?
An Indivisible LC is a Letter of Credit (MT700) that explicitly states it cannot be transferred, split, or drawn down in parts. The payment is only released once the entire value is presented in one document set.
At NNRV, we structure indivisible LCs for clients seeking maximum control, especially in sensitive or high-value trades where partial shipments or staggered payments pose a risk.
🧠 “With an indivisible LC, I know the seller will deliver in full—or not at all.” – Pedro J., National Energy Infrastructure Lead
Key Benefits of Indivisible LC
✅ Full Delivery Required – Seller must fulfill entire contract before payment.
✅ Maximum Buyer Protection – No payment until all terms are met.
✅ Ideal for Strategic or Sensitive Goods – Where partial shipments are not acceptable.
✅ No Transfer or Partial Use – Eliminates unauthorized drawdowns or reassignments.
✅ UCP 600 & MT700 Compliant – All terms enforced legally and globally.
How It Works
Buyer and seller agree on indivisible terms.
LC is issued via MT700 with « Indivisible » clearly noted.
Seller prepares full shipment.
All documents presented together (invoice, B/L, inspection, etc.).
Bank verifies completeness – and pays in one lump sum.
📂 Documents Required for Indivisible LC Issuance
To issue a strict indivisible LC, we require:
📌 Contract with Indivisibility Clause – No partial shipment or payment allowed.
📌 Commercial Invoice – Full amount and single delivery date.
📌 Bankable Delivery Terms – CIF/CIP/DDP for entire cargo.
📌 Compliance/KYC Docs – Buyer and seller credentials.
📌 MT700 LC Draft – With specific language forbidding division.
🏦 Trusted Banks for Indivisible LCs (MT700)
These banks are experienced in structuring indivisible LCs globally:
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Min. Transaction | LC Types |
|---|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | High control and tight LC issuance | No flexibility once issued | 1.5% – 8.2% | 2–5 days | $1M | Indivisible, Irrevocable |
| BNP Paribas HK | BNPAHKHHXXX | Good for high-value government contracts | Limited for commodity-style trade | 1.2% – 7.7% | 2–6 days | $1M | Indivisible, Confirmed |
| Credit Foncier GmbH | CFEGDE82 | Legal precision in enforcing indivisibility | Slower processing of exceptions | 1.4% – 9% | 2–7 days | $500K | Indivisible, Usance |
| Standard Commerce USA | STDMDMDMXXX | Solid for defense, medical, or strategic | Documentation must be 100% complete | 1.3% – 8.5% | 2–6 days | $500K | Indivisible, Confirmed |
| ABC Bank Mauritius | ABCKMUMU | Simple indivisible LC structure for SMEs | May cap issuance amounts | 1.1% – 7.9% | 2–5 days | $250K | Indivisible, Irrevocable |
🎯 Why Use an Indivisible LC?
| 🔒 Feature | ✅ Benefit |
| No Partial Drawdowns | Total value must be presented at once |
| Protects Against Fragmented Delivery | Full shipment or no payment |
| Legal & Regulatory Enforceability | Ideal for public sector or defense |
| Risk-Free for Strategic Imports | One shipment = one compliance process |
| No Misuse by Third Parties | Seller can’t split or transfer the LC |
🛠️ Our 5-Step Structuring Process
Review contract and define indivisibility clause
Draft MT700 with proper restrictions
Validate with buyer and bank
Issue LC with single shipment and single payout conditions
Monitor compliance and release payment on final presentation
🔍 Indivisible LC vs Other LC Types
| LC Type | Flexibility Level | Best Use Case | Control Level |
| Indivisible LC | None | High-stakes, one-shot deals | 🔒🔒🔒🔒🔒 |
| Divisible LC | High | Multi-shipment or phased deals | 🔒🔒🔒🔒 |
| Transferable LC | Medium | Supplier networks | 🔒🔒🔒 |
| Confirmed LC | Medium | Risky jurisdictions | 🔒🔒🔒🔒 |
Why Choose NNRV?
🔒 Strategic LC Structuring for Public & Sensitive Trade
✅ MT700 + Indivisibility Compliance Experts
📄 Government & Infrastructure Ready
🌍 Multi-Bank Network Across 40+ Jurisdictions
📁 End-to-End SWIFT + Contract Alignment
💲 Notes on Fees
Fees oscillate between 1% and 9%, depending on:
• Contract size and structure
• Sector (public, defense, strategic)
• Number of banks involved
🔹 Ask us for a quote based on your indivisible project.
🧠 Real Testimonials
“With indivisible terms, we prevented partial shipments that jeopardized our deadline.”
– Amadou C., Port Authority – West Africa
“One-shot delivery. Full value. No errors. That’s the indivisible LC.”
– Chiara F., Rail Equipment Buyer – Italy
📚 What Makes Us Different?
✔️ Precision Drafting for High-Risk Contracts
✔️ MT700 Clauses That Lock In Payment Only After Full Compliance
✔️ SWIFT Messaging + Legal Support
📌 From $500K to $200M+ indivisible LC deals structured
❓ Top 5 FAQ – Answered by Experts
Can an indivisible LC be transferred? No. It is strictly non-transferable and non-divisible.
What if only 90% of the goods are ready? Payment will be refused until full shipment is documented.
Is this structure compliant under UCP 600? Yes. Clause must be clearly stated and agreed.
Can confirmation be added? Yes. Confirmation ensures payout after full document review.
Can I use this in infrastructure or defense? Absolutely. It is preferred in sensitive contracts.
🔗 Related Services
• Divisible LC
• Confirmed LC
• Government Procurement LC Advisory
• Strategic Risk LC Structuring
📖 Strategic Blog Posts
• When Should You Use an Indivisible LC?
• Legal Protection Through Indivisible MT700s
• LC Structures for Public Sector Procurement
🚀 Structure Your Indivisible LC Now!
Full value. One payout. Zero compromise. Let NNRV build your indivisible LC.
📩 Book Your High-Security LC Call
☎️ Work With MT700 Experts | 🌍 Indivisible Clauses Drafted | ✅ 1%–9% Structuring Range