How do I check a counterparty that uses LC (Letter of Credit) 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.

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LC (Letter of Credit)

Bank undertaking to pay the seller upon presentation of compliant documents.

A Letter of Credit (LC) is a bank undertaking to pay the seller (beneficiary) upon presentation of a defined set of documents — typically Bill of Lading, commercial invoice, inspection certificate, certificate of origin.

Structure: applicant (buyer) instructs issuing bank to issue the LC; the seller's advising bank notifies the seller; optionally the seller's confirming bank adds its own undertaking to reduce country risk. LCs may be "at sight" (paid immediately on compliant docs) or "usance" (paid after N days).

OilFlow's LC coordination workflow routes LC traffic to partner banks by corridor and amount as MOUs are signed. The platform facilitates — it is never a party to the LC.

Related: MT700, DLC, SBLC, CAD.

Frequently asked

What does LC (Letter of Credit) mean in oil and commodity trading?: Bank undertaking to pay the seller upon presentation of compliant documents.
How do I check a counterparty that uses LC (Letter of Credit) 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.