Global & Domestic Trade Facilitation with Bank-Guaranteed Payment Security
Inland (FLC) and Foreign (DLC) letters of credit ensuring secure global procurement with minimum cash margin requirements. Specially structured for Indian growth enterprises and mid-market corporates requiring debt funding from ₹1 Cr to ₹500 Cr.
Letter of Credit (LC)
In high-volume domestic procurement and cross-border trade, suppliers demand payment certainty before shipping high-value goods, while buyers require proof of dispatch before releasing funds.
A Letter of Credit (LC) issued by a tier-1 bank bridges this trust deficit. The issuing bank guarantees payment to the seller upon presentation of compliant shipping documents (Bill of Lading, Lorry Receipt, Quality Certificates, Commercial Invoices).
SME PAISA structures Inland LCs (ILC) and Foreign LCs (FLC) with both Sight and Usance payment terms. Crucially, we negotiate cash margin requirements down from the standard 25%–30% down to 5%–15%, freeing up vital cash.
Key Strategic Benefits
Letter of Credit (LC)
Structured specifically to avoid cash-flow bottlenecks and optimize borrowing costs.
How This Facility Operates
From initial diagnostic appraisal and credit memo preparation to multi-lender syndication and seamless disbursement.
Underlying Contract & Proforma Invoice
Buyer and seller finalize the commercial contract specifying LC terms, shipping documents required, payment tenor (Sight vs Usance), and port of delivery.
LC Sizing & Issuance
Issuing bank opens the LC via SWIFT transmission to the seller’s advising bank against approved trade limits and soft cash margin.
Goods Dispatch & Document Presentation
Seller dispatches goods and submits compliant shipping documents to their bank within the specified presentation period.
Document Verification & Settlement
Issuing bank verifies documents for compliance, hands over shipping documents to the buyer for customs clearance, and settles payment at sight or usance maturity.
Eligibility & Documentation Checklist
Standard underwriting criteria across our network of 50+ scheduled commercial banks and institutional NBFCs.
Primary Eligibility Norms
BENCHMARKSEven if your financial ratios fall slightly outside conventional bank parameters, our credit advisory team structures mitigating covenants, secondary collateral, or multi-banking facilities to secure approvals.
Required Documentation Checklist
48-72 HRSKeep these documents ready to fast-track your proposal review within 48 to 72 hours:
Calculate Limits & Financial Costs
Use our proprietary financial calculators to simulate borrowing capacity, drawing power, and debt service coverage before submitting to credit committees.
Letter of Credit Cost & Sizing Calculator
Simulate facility parameters, cash flows, and interest outgo.
Export Packing Credit & Interest Subvention
Simulate facility parameters, cash flows, and interest outgo.
Trade Credit vs Bank Financing Cost
Simulate facility parameters, cash flows, and interest outgo.
Reverse Factoring Supply Chain Model
Simulate facility parameters, cash flows, and interest outgo.
Why Corporates Trust Our Structuring Desk
We do not lend from our own books. Our sole mandate is generating competing term sheets from 50+ banking partners to deliver lowest borrowing costs.
50+ Lending Partners
Direct access to credit committees across India's premier public sector, private commercial, and specialized NBFC lenders.
100% Conflict-Free Pure Advisory
We do not lend from our balance sheet or operate with lender-biased volume targets or hidden commissions.
Government Scheme Maximisation
Integrating PLI, CGTMSE credit guarantees, TReDS, and Priority Sector lending benefits into your credit structure.
End-to-End Execution till Drawdown
Hands-on management from initial financial diagnostic through to term sheet sanction, security creation, and fund disbursement.
Questions About Letter of Credit (LC)
Key operational, structural, and regulatory details for this credit facility.
Structure your Letter of Credit (LC) with optimal pricing.
Speak directly with our debt syndication team to structure your facility across our 50+ banking partners.
Ready to Access the Right Funding Solution for Your MSME?
Share your business details - our advisory team will map the right capital structure and connect you with the right partners, fast.
