All terms

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.

Related: LC, MT700, SBLC.

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 8 sanctions lists plus PEP and OilFlow's first-party cluster corpus in seconds, or order the full 7-step dossier for $25, and confirm identity documents and banking details independently before you transact.

See also

lcmt700sblc

Seen this term in a live pitch?

These terms show up in real deal pitches — some legitimate, some not. OilFlow screens the counterparty behind the pitch against 8 sanctions lists + PEP and a first-party-investigated fraud-cluster corpus, with a clearance verdict in under 30 seconds.