LC Discounting

Unlock Working Capital with LC Discounting Solutions

• LC discounting, also known as Letter of Credit discounting or LC financing, is a financial service that allows businesses to access funds tied up in Letters of Credit issued by their buyers. At FinXFund, we offer tailored LC discounting solutions to help businesses optimize cash flow and fuel growth.

How It Works

• Letter of Credit Issuance: Your buyer (importer) opens a Letter of Credit with their bank to guarantee payment for goods or services.
• LC Presentation: You, as the exporter, ship the goods or deliver the services and present the required documents to your bank as per the terms of the Letter of Credit.
• LC Discounting Request: You request LC discounting from us, providing the necessary LC documentation and invoices.
• Funding: Upon approval, we discount the LC, advancing a percentage of the LC value to you, typically minus fees and interest.
• LC Maturity: The LC matures, and your buyer pays the full LC amount to our bank.
• Repayment: You repay the advanced amount plus fees and interest to us upon LC maturity
• Benefits of LC Discounting
• Immediate Cash Flow: Access funds quickly to meet working capital needs without waiting for LC maturity.
• Risk Mitigation: Reduce the risk of non-payment by securing financing against the creditworthiness of your buyer’s bank.
• Flexibility: Tailored financing solutions to match your business requirements and LC terms.
• Competitive Rates: Access cost-effective financing options to optimize your cash flow.