Letter of Credit

LCs are widely regarded as the gold standard for secure international trade payments. They are bank-issued guarantees ensuring that exporters receive payment as long as they present documents complying precisely with the terms set out in the LC, governed by the Uniform Customs and Practice for Documentary Credits (UCP 600) rules. This mechanism provides both exporters and importers with protection: exporters gain assurance of payment, while importers ensure that goods are shipped as agreed before release of funds. Due to their rigorous documentation standards and secure payment framework, LCs reduce payment risks, boost trade confidence, and facilitate smoother cross-border transactions.

End-to-End Letter of Credit Services

Sriya Enterprise offers comprehensive end-to-end services around Letters of Credit, tailoring solutions to meet the specific needs of businesses engaged in both domestic and international trade. Their expertise begins with LC vetting—carefully examining LC terms to identify and clarify potential ambiguities or onerous conditions that may expose clients to risks. This scrutiny helps businesses avoid costly discrepancies or delays during shipment and payment.

LC Structuring & Negotiation Support

Sriya Enterprise also supports structuring and negotiation of LCs, assisting clients in crafting terms favorable to their operational and financial goals, such as shipment timelines, partial shipment clauses, and document requirements aligned with RBI and FEMA regulations.

LC Discounting & Liquidity Solutions

Recognizing the critical need for liquidity in trade finance, Sriya Enterprise extends services to domestic and export LC discounting—allowing exporters to monetize their receivables immediately instead of waiting for LC maturity. This facility improves working capital cycles by converting future payments into present cash flow, enhancing a business’s creditworthiness and enabling negotiation of better terms with suppliers and buyers. The discounting process is handled with strict adherence to regulatory frameworks, maintaining compliance while mitigating risks related to foreign exchange and counterparty defaults.

Regulatory Compliance & Risk Management

Moreover, Sriya Enterprise helps clients navigate the complex regulatory landscape surrounding LCs issued or confirmed in India, ensuring that all transactions conform to RBI and FEMA guidelines. This regulatory compliance reduces legal exposure and penalties, especially important for exporters dealing with multiple jurisdictions.

Our Advisory Approach

We provide specialized advisory services for Letters of Credit, focusing on compliance, structuring, and optimization, drawing from industry standards offered by competitors like banks and trade finance platforms.

Letter of Credit (LC) Advisory & Services

• LC Vetting and Review: Detailed examination of LC terms to identify ambiguities, discrepancies, or onerous clauses, ensuring risk-free acceptance for exporters.
• LC Structuring and Negotiation: Guidance on drafting favorable LC terms, including shipment schedules, partial shipments, tolerances, and UCP 600 compliance during negotiations with buyers/banks.
• LC Issuance and Opening Support: Assistance in submitting applications to issuing banks, preparing required documents, and managing the opening process for importers/exporters.
• LC Discounting (Domestic/Export): Monetization of LC-backed receivables for immediate cash flow, improving working capital without waiting for maturity.
• Discrepancy Resolution and Amendments: Handling document mismatches, negotiating amendments, and ensuring smooth payment realization
• Training and Workshops on LCs: Customized corporate sessions covering LC processes, risks, UCP 600, and best practices for trade teams.

These services empower MSMEs and exporters with secure, compliant LC handling for international trade.