Payment instrumentsdlc
DLC
Documentary Letter of Credit — same as LC, emphasising the document-presentation mechanic.
A Documentary Letter of Credit (DLC) is synonymous with an LC in oil-trade usage. The "documentary" adjective highlights the payment mechanic: the bank pays on documents (Bill of Lading, SGS certificate, etc.), not on physical inspection of the cargo.
Scam-circuit note: "DLC MT700 pre-advice" requests before any inspection or tank receipt are a red flag. Legitimate LCs are opened against an SPA, not before.
Frequently asked
- What does DLC mean in oil and commodity trading?
- Documentary Letter of Credit — same as LC, emphasising the document-presentation mechanic.
- How do I check a counterparty that uses DLC in a deal?
- The term itself is not enough to clear or condemn a deal. What matters is the counterparty behind the pitch. Screen that name for free against OilFlow's first-party fraud-cluster corpus in seconds, and confirm identity documents and banking details independently before you transact.
See also
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