Charges & Pricing check0 / 1 answered · 0 correct
Check 1
Should two LC structures be compared only by the issuing bank’s upfront fee?
Build the Total Transaction Cost
A practical checklist before you compare two structures.
Banking costs
List issuance, advising, confirmation, amendments, document checking, reimbursement, transfer/counter-guarantee and payment charges where applicable.
Financing costs
Add discount interest, facility margin, arrangement fees, commitment fees and recourse economics.
Commercial costs
Insurance, inspection, logistics, legal, tax and provider/intermediary costs may be outside bank fees but still affect the transaction.
Compare like with like
A cheaper issuance fee can be irrelevant if the structure creates expensive confirmation, impossible documents or long funding delays.
Standards / source note: Bank charges and pricing are transaction-specific. Obtain the current tariff or quote from the banks involved; ICC rules do not set universal fee levels.
Remember thisThe cheapest line item is not necessarily the cheapest transaction.
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