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Immediate Liquidity Against Letters of Credit
Holding a usance LC? Convert it into cash today at bank-risk pricing — the cheapest receivable finance available to Indian suppliers and exporters.
Funding Amount
₹1 Cr – ₹200 Cr
Approval Timeline
3–7 days
Pricing
7.5% p.a. onwards
About LC Discounting
A usance letter of credit is a bank's irrevocable promise to pay you on a future date. That promise is a high-grade financial asset — and like any high-grade asset, it can be monetised. LC discounting converts your 90 or 180-day LC receivable into immediate funds at rates linked to the LC-issuing bank's credit, not yours.
This is the crucial insight: because the discounting bank's risk is on the issuing bank, suppliers with modest balance sheets access near-prime pricing — frequently 7.5–9.5% annualised for LCs of strong Indian banks, and competitive LIBOR/SOFR-linked pricing for export LCs from acceptable foreign banks.
LOANYARD CAPITAL arranges discounting of inland and export LCs, negotiates confirmation where issuing banks need enhancement, and structures standing arrangements for suppliers who receive LCs routinely — so every future LC turns into cash within days of shipment.
Key Benefits
Who Should Apply
- Suppliers receiving usance LCs from corporate buyers
- Exporters holding LCs from overseas banks
- Commodity and metals traders on LC terms
- Sub-vendors in EPC chains paid via LC
- Businesses negotiating LC terms into new contracts
Eligibility
- Genuine usance LC from an acceptable bank
- Clean, compliant shipping/trade documents
- Underlying GST-compliant transaction
- Basic KYC of the beneficiary entity
- LC free of onerous or unusual clauses
Documents Required
- Copy of the LC and amendments
- Invoice, transport documents, packing list
- Certificate of acceptance where applicable
- Business KYC and banking details
- GST registration
- Past LC flow summary for standing limits
Industries Served
Our Process
LC Review
We vet the LC, issuing bank and document set.
Bank Matching
Placement with the discounting desk offering finest pricing.
Document Negotiation
Compliant presentation and acceptance secured.
Discounting
Funds credited, typically within 3–7 days of acceptance.
Standing Facility
Repeatable limits established for future LCs.
Why LOANYARD CAPITAL
15+ Years
Advisory Experience
500+
Corporate Clients
100+
Lending Relationships
Pan-India
Coverage