Documentary Letter of Credit (DLC)

Trade Finance & Trade Goods Payment Security Solutions

Our Letter of Credit (LC) is primarily issued by LEN24 Investment Bank. This is due to our
competitive rates and we specialize in Trade Financing and Investment Banking.

Instrument & Service Description

Documentary Letter of Credit (DLC) (also known as Commercial Letters of Credit

CLC)

A documentary letter of credit is one of the oldest and most standard forms of payment for
transactions in international trade. Foreign exporters that deal with unfamiliar companies
thousands of miles away are naturally uncomfortable investing money to produce goods and ship
them without any assurance of payment. Without a letter of credit, exporters generally ask for
substantial deposits or other payment guarantees. Letters of credit allow buyers to avoid these
undesirable alternatives.

Likewise, importers dealing with foreign suppliers do not want to pay upfront for goods that may
not correspond to purchase order specifications or may arrive late, if ever. Naturally, buyers would
prefer to postpone payment until they receive the goods as expected. Letters of credit can prevent
buyers from losing deposits when the sellers’ performance is deficient in any way. Without the
letter of credit, buyers are left to fend for themselves to recover their deposits if goods are not
produced according to specifications.

For both buyers and sellers in a given transaction, letters of credit represent a reasonable
compromise that protects both sides’ interests by assuring exporters that they will get paid once
they produce and ship the goods according to certain documentary requirements that in turn
protect importers’ interests. This is akin to an escrow arrangement, ensuring exporters that the
goods won’t be released until they get paid and providing buyers with a guarantee that they will
get the goods if the exporter is paid.

Remember that Len24 Bank offers unsecured letters of credit, something most other financiers
do not. Unsecured means you do not have to tie up valuable collateral to open a letter of credit.

IMPORTANT

A Documentary Letter of Credit (DLC) normally forms of payment security or payment guarantee
between a Buyer and Seller of Goods. Therefore, the Documentary Letter of Credit (DLC) we
provide clients are NOT MONETIZABLE and are NOT TRANSFERABLE like a Bank Guarantee
(BG) would be. A Documentary Letter of Credit (DLC) is a specialist payment mechanism that is
used for a specific buy and sell goods transaction, a DLC cannot be monetized by a 3rd party.

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 Documentary Letter of Credit (DLC) Benefits

A letter of credit minimizes risk, maximizes control, and optimizes profits associated with
international trade by making transactions simpler, smoother and safer for all sides.

Buyer Benefits Seller Benefits

• You may not have the necessary
collateral requirements or relationship
with the bank to get a letter of credit—but
we do.
• You don’t have to leave deposits with your
suppliers, since your letter of credit will be
opened for the full amount of the
transaction—so your cash is not tied up or
at risk while your supplier can often
borrow against a letter of credit.
• You may significantly increase your ability
to do business with companies outside
the U.S. by bolstering your financial
position with your suppliers.
• You can build safeguards into the letter of
credit, including inspection of the goods
and quality control, and set production
and delivery times. This gives you more
quality control over your goods.
• Payment is assured as long as you
comply with the terms and conditions
of the letter of credit.
• The credit risk is transferred from the
buyer to the issuing bank, which is
obligated to pay even if the buyer goes
bankrupt.
• You have easier access to financing
and are able to transfer all or part of
the letter of credit to another party,
e.g., to purchase raw materials.
• Collection time is minimized, as the
letter of credit accelerates payment of
receivables, and foreign exchange risk
is eliminated when it is issued in the
currency of your country.

“ Leverage is the key to making what you have go much further. Just like a crowbar or a
moving dolly, leverage allows you to harness the power of good positioning and the
strategic application of energy to move mountains. As an entrepreneur, you’re often
dealing with limited resources, be they time, money or manpower, to try to radically
change the world. Leverage is the key to Success ”
- Adam Torren

• 72 Hour Delivery – We normally deliver a Documentary Letter of Credit (DLC) within 72

hours of all documentation and payments being completed.
• Any Country – We will issue a Documentary Letter of Credit (DLC) for the import/export
of goods from ANY country except Austria.
• Any Currency – We will issue a Documentary Letter of Credit (DLC) in almost any
currency except Renminbi.
• Lower Fees – Our fees for issuing a Documentary Letter of Credit (DLC) are more cost
effective than many larger public banks.
• Less Restrictive – Our required control clauses for a Documentary Letter of Credit
(DLC) are much easier than other banks

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Note
We can also issue a Documentary Letter of Credit (DLC) from other Banks, but these banks fees,
process and structure are stricter and more difficult. Therefore, most of our clients prefer to use a
Documentary Letter of Credit (DLC) issued by Len24 Investment Bank.

We use the Bank SWIFT Network to have the clients Documentary Letter of Credit (DLC)
delivered Bank to Bank. We operate a reliable, efficient delivery and authentication process to
ensure all Documentary Letters of Credit (DLC) are successfully delivered for our clients.

Client Deposits are 100% Protected with 2 Levels of Protection

We value our relationships with our clients so much that ALL CLIENT DEPOSITS for a
Documentary Letter of Credit (DLC) receive 2 Tiers of Protection which are:
• Corporate Refund Undertaking
• Non-Performance Penalty

Documentary Letter of Credit (DLC) Costs

Costs are customized to each Goods transaction and therefore an exact quote can be provided
once a completed application is received, but as a pricing guide:
• A 90 Day Documentary Letter of Credit (DLC) costs 4.3% plus a $1500
• Additional 30 Day periods cost .6.5% plus $750

Estimated Completion Time

• A Documentary Letter of Credit (DLC) is normally issued within 72 hours of all
documentation and payments being completed by the Applicant.

Closing Process

Application
Complete and return the Documentary Letter of Credit (DLC) Application and Pay the $1185 USD
Application fee.

Issuing of Draft
We will then create a draft of the Documentary Letter of Credit (DLC) for you and your supplier to
review.

Draft Review and Opening Payment

1. Once you and your supplier finalize the draft and sign off your acceptance of the draft
(changes are free of cost).
2. We then issue you with an Invoice for the Documentary Letter of Credit (DLC), which
you arrange to pay.

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 3. Upon receipt of your wire payment, we release the finalized Documentary
Letter of Credit (DLC) to the bank for issuance and delivery.

Issuance
Typically, the bank will issue the Documentary Letter of Credit (DLC) within 48 hours of release.
Upon issuance, we email you a copy of the DLC as transmitted by SWIFT, including the DLC
reference number. Your supplier’s bank should receive and confirm the Documentary Letter of
Credit (DLC) transmission shortly thereafter.

Presentation of Documents
Once the supplier has prepared and loaded the goods for transit, they must present the specified
documents for that shipment to their bank. Their bank will transmit these documents to our bank.
We will email you copies of the presentation (and all documents submitted by the supplier) for
your review and approval.

Payment for Goods

Before our bank releases the original documents, we must receive payment for the presentation.
Upon receipt of payment, we consign the documents to you and overnight them to your freight
forwarder or whomever you designate – thus completing the transaction.

Critical Compliance Criteria

Accepted Criteria

• Clients that comply with our required Client Standards and accurately and correctly
complete the Documentary Letter of Credit (DLC) Application.

Rejected Criteria

• Any Documentary Letter of Credit (DLC) that is required to be delivered to a Provider

on this Banned Providers List.
• Any Documentary Letter of Credit (DLC) application where the client cannot or does
not want to pay the required Deposit.
• Documentary Letter of Credit (DLC) required for clients in Austria.

Critical Information
• Our Documentary Letter of Credit (DLC) delivery service is Non-Negotiable. We do not
change the terms, structure, delivery procedures or prices of this service.
• We do not offer FREE Documentary Letter of Credits (DLC) or allow clients to pay for the
Documentary Letter of Credit (DLC) after they have received it. If the Bank is not paid to
send the Documentary Letter of Credit (DLC), then no Documentary Letter of Credit (DLC)
will ever be sent or delivered. Banks simply do not work for free or on the hope that after
they deliver a Documentary Letter of Credit (DLC) that the client may pay them.

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Client Standards

Len24 Bank requires clients meet key standards and pass compliance for us to consider working
with them. We do not accept all clients because doing business with Len24 Bank is a unique
privilege given solely to real, genuine, authentic clients, not a right that is attainable by all.

Summary

We solely deal with real deals, real people and real Letter of Credits (LC) that need to be delivered
to our clients nominated bank account. The Bank SWIFT Network is the Gold Standard that
validates all aspects of this transaction and provides a respected industry platform where a safe
settlement can be facilitated.

Application Procedure

In order for you to get started we would send you an application form and we will need a full KYC.

By then we have a Pre-approval for your request in place and we will send you the final application
for you to sign and return to us.

Then we will get you the LOI/MOU. The whole process should take between five to ten days after
the first payment is made.

NB! Changes may occur without warning!

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