Any difference from LC and DLC?

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gblbf
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Any difference from LC and DLC?

Post by gblbf » Fri Nov 10, 2017 11:01 pm

Dear guys,

I know this question may sound really stupid, but could anyone care to explain to why some Sellers use the term DLC instead of LC?

Is it another form of payment ? Or its just a different name for the same banking instrument?

We are dealing with a Brazilian trading who is insisting in change form of payment from LC to DLC, so i need really to understand better. I couldn't find anything easy for me to understand on google.

THank you.

ALSAYEGH
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Re: Any difference from LC and DLC?

Post by ALSAYEGH » Sun Nov 12, 2017 11:30 am

Hi,

They are both same but with adding the word (Documentary of) to the other abbreviation.

Navi
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Re: Any difference from LC and DLC?

Post by Navi » Mon Nov 13, 2017 1:03 pm

Hi friend,

In trade finance, letter of credit is generally abbreviated as LC /letter of credit) or DC ( documentary credit).
I haven't heard DLC before. But according to finance dictionaries DLC is also used ( as documentary letter of credit) although very seldom. Another alternative my be "Deffered letter of credit".
.
The people you have dealed with either not know that all refer to LC or the method in his head is sth very different not globally known maybe.

gblbf
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Re: Any difference from LC and DLC?

Post by gblbf » Mon Nov 13, 2017 6:22 pm

Navi wrote:
Mon Nov 13, 2017 1:03 pm
Hi friend,

In trade finance, letter of credit is generally abbreviated as LC /letter of credit) or DC ( documentary credit).
I haven't heard DLC before. But according to finance dictionaries DLC is also used ( as documentary letter of credit) although very seldom. Another alternative my be "Deffered letter of credit".
.
The people you have dealed with either not know that all refer to LC or the method in his head is sth very different not globally known maybe.
Dear Navi,

By "DLC" i'm pretty sure he meant "Documentary Letter of Credit". So, am i correct to assume that Letter of Credit, Documentary Credit and Documentary Letter of Credit are the same thing ?

Thank you very much.

gblbf
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Re: Any difference from LC and DLC?

Post by gblbf » Thu Nov 16, 2017 5:51 pm

Navi wrote:
Mon Nov 13, 2017 1:03 pm
Hi friend,

In trade finance, letter of credit is generally abbreviated as LC /letter of credit) or DC ( documentary credit).
I haven't heard DLC before. But according to finance dictionaries DLC is also used ( as documentary letter of credit) although very seldom. Another alternative my be "Deffered letter of credit".
.
The people you have dealed with either not know that all refer to LC or the method in his head is sth very different not globally known maybe.
Thanks for your explanation.

Yes, we are dealing with this intermediate and he keeps asking for DLC instead of LC. He said that DLC is "Documented" and LC isn't. Looks like he clearly doesn't know what he is talking about... I'm pretty sure he didnt mean Deffered LC.

So if i come to bank and tell them to issue a DLC, LC or DC they will issue exactly the same instrument correct?

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