Advanced LC check0 / 1 answered · 0 correct
Check 1
What does “DLC” commonly mean in trade finance?
DLC, LC and MT700 Terminology
Clear up the language used in online trade-finance discussions.
LC
Letter of Credit is a broad term. In trade, people often mean a documentary credit.
DLC
DLC is commonly used as shorthand for Documentary Letter of Credit. It is not a separate magical instrument class merely because the D is added.
MT700
MT700 is the SWIFT message used to issue a documentary credit in the Category 7 MT standard. The message and the instrument are related but not identical concepts.
Ask for precision
Instead of arguing over acronyms, ask what undertaking is being issued, under what rules, with what availability, documents and bank.
Source / standards noteThis lesson uses original plain-English explanations. Read the credit, UCP 600 and current bank practice for a live transaction.
Remember thisDLC usually means documentary LC; MT700 is the message used to issue it — not a separate cash asset.
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