{"id":35730,"date":"2020-08-03T02:35:37","date_gmt":"2020-08-03T02:35:37","guid":{"rendered":"https:\/\/www.tradefinanceglobal.com\/?page_id=35730"},"modified":"2025-01-30T12:05:56","modified_gmt":"2025-01-30T12:05:56","slug":"sight-lcs","status":"publish","type":"page","link":"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/sight-lcs\/","title":{"rendered":"Sight Letters of Credit (LC)"},"content":{"rendered":"\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-header-without-image d-flex flex-direction-column justify-content-center\">\n    <h2 class=\"fs-32 fw-700 fs-xs-28 not-for-table-content\" id=\"heading-sight-letters-of-credit-lc\">\n        Sight Letters of Credit (LC)    <\/h2>\n    <div class=\"d-grid grid-col-2 grid-col-xs-1\">\n                            <div class=\"\">\n                <div>Last updated on 30 Jan 2025<\/div>\n                <div>03 Aug 2020 . 3 min read<\/div>\n            <\/div>\n            <\/div>\n    <\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Sight-Letters-of-Credit-LC-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/><\/figure><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto country-quick-link is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:35%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #f2f5f7 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-most-popular\">Most popular<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/\">\n        Introduction to Letters of Credit      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/benefits-of-letters-of-credit\/\">\n        Benefits of Letters of Credit      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/handling-document-discrepancies\/\">\n        Handling Document Discrepancies      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/swift-messaging-types\/\">\n        SWIFT Messaging Types      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/parties-involved\/\">\n        Parties Involved      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/financial-crime-fraud-and-sanctions\/\">\n        Financial Crime, Fraud &#038; Sanctions      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/documentary-collections\/courses\/\">\n        Letters of Credit Courses      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:22%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #ebf5f4 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-research-and-guides\">Research and Guides<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/ucp-600-ultimate-guide\/\">\n        UCP 600 \u2013 Ultimate Guide      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/editions\/letters-of-credit-research-2022\/\">\n        Research      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/baft-guide\/\">\n        BAFT &#038; TFG Guide      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/digitalisation-and-the-future\/\">\n        Digitalisation &#038; the Future      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/documentary-collections\/\">\n        Documentary Collections      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/finance-products\/promissory-notes-bills-of-exchange\/\">\n        Promissory Notes and Bills of Exchange      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:22%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #e5f5ff !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-rules\">Rules<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/letters-of-credit-rules\/\">\n        Letters of Credit Rules      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/ucp-600\/\">\n        UCP 600      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/eucp\/\">\n        eUCP Explained      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/urc-522-eurc\/\">\n        URC 522 &amp; eURC      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/isbp-821\/\">\n        ISBP 821      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/presentation-of-documents\/\">\n        Presentation of Documents      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/dispute-resolution\/\">\n        Dispute Resolution      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:22%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #E6FAFE !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-types\">Types<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/types-of-credit\/\">\n        Types of Credit      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/restricted-letters-of-credit\/\">\n        Restricted Letters of Credit      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/difference-between-lcs-and-bank-guarantees\/\">\n        Letters of Credit vs Bank Guarantees      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/standby-letter-of-credit-sblc\/\">\n        Standby Letters of Credit      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/sight-lcs\/\">\n        Sight Letters of Credit      <\/a>\n      <\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"bg-light-blue d-flex gap-16 h-auto p-16 rounded xs-flex-direction-column\">\n    <div class=\"\">\n    <img decoding=\"async\" style=\"min-width:100px;max-width: 150px\" src=\"https:\/\/secure.gravatar.com\/avatar\/adbea0e7d528d8822bada7096c1e6ea9?s=160&#038;d=mm&#038;r=g\" class=\"w-100 rounded\">\n  <\/div>\n  <div class=\"col-span-2 col-span-xs-1\">\n    <div class=\"d-flex flex-direction-column gap-16 fs-16 justify-content-between\">\n      <div class=\"fs-16 fw-700\">Mark Abrams<\/div>\n      <div class=\"fs-14 fw-400 elipsise-2-line\" title=\"Mark heads up the trade finance offering at TFG where\u00a0his team focuses on bringing in alternative structured finance to international trading companies.\">\n        Mark heads up the trade finance offering at TFG where\u00a0his team focuses on bringing in alternative structured finance to international trading companies.      <\/div>\n      <div>\n        <a class=\"text-black fs-12 small-link-arrow-right\" href=\"https:\/\/www.tradefinanceglobal.com\/posts\/?author=74\">\n          <span>\n            Latest Post          <\/span>\n        <\/a>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n<div style=\"min-height:100px!important;\" class=\"block-cta max-w-100 p-32 h-auto rounded sm-w-60 dark-mode bg-black align wp-block-acf-block-cta\">\n  <h4 id=\"heading-access-trade-receivables-and-supply-chain-finance\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n    Access trade, receivables and supply chain finance  <\/h4>\n  <p class=\"block-subtitle dark:color-white\">We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.<\/p>\n  <a href=\"\/\" class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n    <span>Get Started<\/span>\n  <\/a>\n<\/div>\n\n<div class=\"block-cta p-24 h-auto rounded\">\n    <h4 id=\"heading-\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n      <\/h4>\n  <p class=\"fs-16 fw-400 dark:color-white\">Download our our free Letters of Credit guide<\/p>\n  <div class=\"mb-20\">\n    <img loading='lazy' alt='Letters-of-Credit' style='width:auto; height:200px'  width='auto' height='auto' src='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-150x150.jpg' srcset='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-300x300.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-150x150.jpg 150w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-320x320.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-370x370.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-414x414.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-200x200.jpg 200w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-250x250.jpg 250w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-162x162.jpg 162w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-159x159.jpg 159w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-123x123.jpg 123w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit-190x190.jpg 190w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Letters-of-Credit.jpg 600w' \/>  <\/div>\n      <a href=\"https:\/\/www.tradefinanceglobal.com\/login\/?redirect_url=https%3A%2F%2Fwww.tradefinanceglobal.com%2Fwp-json%2Fwp%2Fv2%2Fpages%2F35730\"  class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n      <span>Download<\/span>\n    <\/a>\n    <\/div>\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/www.libf.ac.uk\/professional-qualifications\/trade-and-transaction-banking\/certificate-for-documentary-credit-specialists-cdcs\/?utm_source=TFG+-+CDCS&amp;utm_medium=MPU+banner&amp;utm_campaign=TFG+-+CDCS+campaign\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-1024x1024.gif\" alt=\"\" class=\"wp-image-126577\" style=\"width:256px;height:256px\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-1024x1024.gif 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-300x300.gif 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-150x150.gif 150w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-768x768.gif 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-320x320.gif 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-370x370.gif 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-414x414.gif 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-200x200.gif 200w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-250x250.gif 250w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-162x162.gif 162w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-159x159.gif 159w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-123x123.gif 123w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/CDCS-MPU-190x190.gif 190w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>ADVERTISEMENT<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-contents\">Contents<\/h2>\n\n\n<div class=\"block-table-content h-auto bg-white auto\">\n    <ul class=\"table-content\"><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-sight-lcs-sight-letter-of-credit\">Sight LCs \u2013 Sight Letter of Credit<\/h2>\n\n\n\n<p class=\"bg-tale rounded p-24 h-auto\" style=\"font-size:16px\"><strong>Sight LC<\/strong>&nbsp;stands for Sight Letter of Credit, but before we get into the details of the topic, let us find out what letters of credit (\u201c<strong>LCs<\/strong>\u201d) are.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-1024x682.jpg\" alt=\"\" class=\"wp-image-105299\" width=\"1024\" height=\"682\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-1024x682.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-300x200.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-768x512.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-285x190.jpg 285w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-320x213.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-370x246.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-414x276.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-450x300.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-375x250.jpg 375w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-243x162.jpg 243w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-239x159.jpg 239w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC-185x123.jpg 185w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/sight-LC.jpg 1300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Letter of Credit<\/h2>\n\n\n\n<p style=\"font-size:16px\">Letters of Credit include&nbsp;<strong>Sight LCs<\/strong>&nbsp;that rely on underlying documentation. The beneficiary must submit certain documents to the specific bank\/s in order to get paid. A letter of credit is typically the document that governs the requirements for payment. Other documentation must prove that the exporter met the obligation towards the buyer.<\/p>\n\n\n\n<p style=\"font-size:16px\">Think of a letter of credit as a payment tool. However, it is separate from a sales or purchase agreement. A letter of credit helps to ensure that the party on the other end of a deal obliges and performs specific tasks expected of them.<\/p>\n\n\n\n<p style=\"font-size:16px\">A bank works as an intermediary guarantor for payment and holds the money until it gets proof that the requirements stated in the letter of credit were satisfied. To set up and draft a documentary LC, the party that will make the payment applies for an LC with a local bank of their choice.<\/p>\n\n\n\n<p style=\"font-size:16px\">In case you are a seller dealing with overseas buyers, using a letter of credit can help you gain confidence. A properly drafted LC will ensure that you get paid as long as you fulfill the requirements mentioned in the document.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is a Sight LC?<\/h2>\n\n\n\n<p style=\"font-size:16px\">A sight letter of credit is a document that guarantees the payment against any services or goods that are being delivered. The amount is payable when the party presents the&nbsp;<strong>Sight LC<\/strong>&nbsp;along with other necessary documents.<\/p>\n\n\n\n<p style=\"font-size:16px\">A company offering a sight letter of credit commits to pay an agreed amount of money to the other party when all of the provisions in the LC are met.<\/p>\n\n\n\n<p style=\"font-size:16px\">This means a&nbsp;<strong>Sight LC<\/strong>&nbsp;provides both the buyer and seller in a transaction some level of protection. Plus, it helps decrease some significant risks involved in conducting business, especially if you are dealing with an international client, either buyer or seller.<\/p>\n\n\n\n<p style=\"font-size:16px\">Always remember, a&nbsp;<strong>Sight LC<\/strong>&nbsp;will involve three parties, i.e., seller, buyer, and the bank issuing letter of credit.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Sight Letters of Credit Work?<\/h2>\n\n\n\n<p style=\"font-size:16px\">It is relatively simple to understand how a&nbsp;<strong>Sight LC<\/strong>&nbsp;works. A third party, typically a bank, provides a letter of credit with a guarantee to pay the agreed payment once the other party renders the desired products or services.<\/p>\n\n\n\n<p style=\"font-size:16px\"><strong>Sight LCs<\/strong>&nbsp;list precise conditions when the bank can release the payment to the service provider. These conditions may include certain documentation requirements along with an acceptable timeline for the delivery of goods.<\/p>\n\n\n\n<p style=\"font-size:16px\">Proof of shipment is one of the required documents to release the payment. The payment requesting party must present this proof directly to the LC issuing bank.<\/p>\n\n\n\n<p style=\"font-size:16px\">It is important to remember that an LC is a separate document from other negotiated contracts that are part of a business transaction. However, it still requires both parties to agree upon the LC terms and conditions. As a business, you can use it for either national or international transactions.<\/p>\n\n\n\n<p style=\"font-size:16px\">However, parties mostly use an LC for international sales transactions. Why? It protects both buyers and sellers and moves the risk away from them, by having an intermediary bank involved in a business transaction from start to finish.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"438\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-1024x438.jpg\" alt=\"\" class=\"wp-image-105308\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-1024x438.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-300x128.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-768x328.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-700x300.jpg 700w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-320x137.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-370x158.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-414x177.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-600x257.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-372x159.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-450x192.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-380x162.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature-285x122.jpg 285w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/letter-signature.jpg 1230w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When a Sight Letter of Credit Becomes Due?<\/h2>\n\n\n\n<p style=\"font-size:16px\">A&nbsp;<strong>Sight LC<\/strong>&nbsp;becomes payable as soon as the beneficiary provides the required documents to the bank, fulfilling the conditions of the sight letter of credit. However, the bank gets a reasonable time to process the requested payment. This time typically goes up to five business days.<\/p>\n\n\n\n<p style=\"font-size:16px\">The required documents may include either proof of delivery or proof of shipment for the products purchased by a buyer, as a&nbsp;<strong>Sight LC<\/strong>&nbsp;protects both buyer and seller by decreasing any risk involved in international trading. If a seller expresses any concerns about receiving their payment, they can demand a&nbsp;<strong>Sight LC<\/strong>&nbsp;as it will become an insurance policy.<\/p>\n\n\n\n<p style=\"font-size:16px\">One of the most common examples of the effectiveness of sight letters of credit is as follows:<\/p>\n\n\n\n<p style=\"font-size:16px\">A business owner can present a&nbsp;<strong>Sight LC<\/strong>&nbsp;along with a bill of exchange to a lender and walk away with all the necessary funds on the spot. This makes&nbsp;<strong>Sight LCs<\/strong>&nbsp;an important document in the trading arena, and it enjoys more popularity than any other type of letter of credit.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Difference between Sight LC and Time LC<\/h2>\n\n\n\n<p style=\"font-size:16px\">A lot of business owners get confused between&nbsp;<strong>Sight LC<\/strong>&nbsp;and time letter of credit. Although both require certain documents, and both are common practice within the trading arena, there is a slight difference between the two.<\/p>\n\n\n\n<p style=\"font-size:16px\">A sight LC becomes due as soon as the beneficiary presents the proof of delivery or proof of shipment, and other ancillary documents. On the other hand, a Time LC needs certain days to pass after submitting a letter of credit, proof of delivery or shipment, and other required documents, before the payment becomes due.<\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"block-content align bg-tale rounded p-24 fs-16 h-auto wp-block-acf-block-content\"style=\"background-color: #FFFFFF;color: #002F4D;\"\n>\n    <p>There are several advantages of a sight letter of credit, such as:<\/p>\n<p>Efficient Working Capital Management for the Seller<br \/>\nThe sellers get the flexibility to manage their working capital with efficacy. One of the most lucrative advantages of a Sight LC is that the seller can expect to receive the payment against the products quickly and as soon as the shipment of goods is on its way.<\/p>\n<p>Consequently, the seller will not have to experience a cash crunch; and so the seller can efficiently manage his working capital.<\/p>\n<p>Early Payment Benefits<br \/>\nSight letters of credit come with an interesting benefit for the seller. Typically, a business uses a working capital loan or an overdraft facility to manage their working capital. This scenario becomes inevitable when the seller extends a credit period to a buyer. The credit period may be for a duration of 15 to 90 days. This extension of credit and thus cash gap is not relevant where there is an LC, as a Sight LC guarantees that the seller will get paid earlier.<\/p>\n<p>Competitive Advantage for the Buyers<br \/>\nAs a buyer does not take any credit period from the selling party, they are in a better position to negotiate competitive prices and terms with a seller. This gives a competitive edge to the buyer in the trade market.<\/p>\n<\/div>\n\n\n<p><\/p>\n\n\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<section class=\"full-width block-slider_with_text py-10\" data-block=\"slider_with_text\" data-theme=\"dark\">\n  <div class=\"container overflow-hidden\">\n    <div class=\"slider-text-block\">\n      <div class=\"slider-text-block-container\">\n        <h2 id=\"heading-explore-our-financing-solutions\" class=\"elipsise-2-line word-wrap not-for-table-content\">\n          Explore our financing solutions        <\/h2>\n        <span class=\"block-subtitle elipsise-2-line word-wrap\">How TFG are helping to finance tomorrow&#8217;s trade<\/span>\n                  <a href=\"\/get-trade-finance\/\" class=\"button-standart button-standart-blue\">\n            <span>Find out more<\/span>\n          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src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-414x168.jpg 414w, 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href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/hardware-distribution-company-ecommerce\/\" rel=\"bookmark\" class=\"elipsise-2-line\">\n                      Hardware distribution company in e-commerce &#8211; A case study                    <\/a>\n                  <\/h4>\n                <\/div>\n              <\/div>\n                              <div class=\"post-image\">\n                  <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/hardware-distribution-company-ecommerce\/\" rel=\"bookmark\">\n                    <img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Hardware-distribution-company-in-e-commerce-\u2013-A-case-study.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Hardware-distribution-company-in-e-commerce-\u2013-A-case-study.jpg 869w, 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&rarr;<\/a><\/p>\n","protected":false},"author":84,"featured_media":110529,"parent":10611,"menu_order":15,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","ep_exclude_from_search":false,"footnotes":""},"categories":[2129],"class_list":["post-35730","page","type-page","status-publish","has-post-thumbnail","hentry","category-letters-of-credit"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sight LCs \u2013 Sight Letter of Credit [UPDATED 2025]<\/title>\n<meta name=\"description\" content=\"[UPDATED 2025] If you are a business owner or new to the trading industry, you must know about Sight LCs. 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