A documentary letter of Credit (DCL) is the bank's promise to pay a seller on behalf of the buyer as long as the seller complies with precisely defined terms and conditions specified in the credit. Documentary Letters of Credit are popular with various Asian companies that are in the commodity industry. Both parties of the transaction are applicant, beneficiary, and assurance of payment.
Line of Credit helps customers purchase documentary letters of credit or monetize their documentary letters of credit by up to 80% LTV, and we often close a transaction between 3-10 banking days.
For Monetizing DLCs, Our Process is:
Please note: There are no upfront fees if the client comes fully prepared with all of the required paperwork to start a transaction.
For clients who are not ready to start a transaction, and don't have their paperwork ready, and need access to our time, intellectual property, or need to get educated on how banks monetize a documentary letter of credit, we offer 1:1 coaching calls. These coaching calls are "paid coaching calls," and you book them with us via this link:
If you would like us to issue a documentary letter of credit, our process is:
Application is made to 2705565 Ontario Inc. C/O Line of Credit.Ai for opening of a DLC including but not limited to the following:
1. DLC application form. (Provided by 2705565 Ontario Inc. upon request)
2. Performa Invoice of Transaction.
3. Desired verbiage of DLC. (If none provided 2705565 Ontario Inc. will provide its normal DLC verbiage).
4. SWIFT code and address of beneficiary bank.
5. KYC and AML documents including but not limited to: Passport copy of applicant, articles of incorporation of applicant company and brief summary and/or business plan of underlying transaction.
2705565 Ontario Inc. reviews all documents presented and evaluates acceptability of documents. 2705565 Ontario Inc. will then send the application to its partner(s) and either approves application or denies and shall inform the applicant of such decision.
2705565 Ontario Inc. or its partner(s) prepares draft of the DLC as it is comfortable to issue and forwards to client for approval. All drafts shall be in lined with rules and regulations governing the issuance of DLC.
The client approves the draft and:
1. Signs a contract agreeing to the terms and conditions of issuance and issuance charges as
2. 2705565 Ontario Inc. or its partner(s) issues the invoice for the agreed upon charges.
2705565 Ontario Inc. 6A-170 The Donway West, Suite 1403, Toronto, Ontario, M3C 2E8
Client makes payment of charges as per agreed upon payment structure.
1. Client shall provide TT/Wire copy of payment made to 2705565 Ontario Inc.escrow account.
2. 2705565 Ontario Inc. or its partner(s) shall confirm to client credit of funds upon receipt of funds to 2705565 Ontario Inc. designated account.
2705565 Ontario Inc. or its partner(s) uploads draft to SWIFT system and provides copy to applicant for final approval of message. Upon approval given by applicant 2705565 Ontario
Inc. then releases the SWIFT to beneficiary bank coordinates.
Copies of released SWIFT are then forwarded to the client via email or hard copy as requested.
In case the client is represented by an advisor, then it is forwarded to the advisor only.
Any amendments to DLC are subject to approval of 2705565 Ontario Inc or its partner(s).
The following is the procedure for payment schedule. The following are general terms:
1. Fees are paid before the issuance of each SWIFT message.
2. 2705565 Ontario Inc. or its partner(s) does not engage in JV payment structures and will not issue any message for zero monies paid upfront.
3. 2705565 Ontario Inc. or its partner(s) will not accept payment via ICBPO.
4. If 2705565 Ontario Inc. or its partner(s) fails to deliver the instrument as agreed upon, 2705565 Ontario Inc. or its partner(s) shall return the fees paid for that issuance.
All fees shall be agreed upon and stated in a formalized contract.
I still a few questions - that may turn into an hour long conversation that will leverage your teams years of experience - I would love to hire your firm as a consultant to answer all of my questions.
I'm prepared to purchase a DLC or Monetize a DLC. I understand I need to provide you with a CIS/KYC, a copy of the instrument that I want to monetize or provide proof of funds.