DCW Monthly: October 2026
This month’s content follows a standby LC past issuance and asks a practical question: once the instrument is out
2 min read
Query:
We are a consultancy acting as applicant on behalf of our client seeking to import. Our bank’s trade finance department has issues with intended letter of credit text and refuses to issue based on its belief that the LC is a standby because it does not call for a bill of lading.
Is it possible to have a commercial LC that does not require presentation of a transport document?
DCW Responds:
Based on the accompanying SWIFT MT700 message you have provided, your question is whether this LC would qualify for the risk weighting attributable to a commercial letter of credit.
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