Your LC Is a Promise to Pay. We Turn It Into Cash Today.
Discount your Letter of Credit with DCL and get the working capital to fulfil the order now — no waiting for the LC to mature.
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What is LC Discounting?
LC Discounting (also known as Anchor-backed LC Discounting) bridges the gap between receiving a Letter of Credit from a buyer and actually getting paid. Instead of waiting for the LC to mature, DCL advances you working capital against it — using the issuing bank’s payment undertaking as security — so you can mobilise production or procurement immediately.
With this facility, you benefit from:
- Immediate working capital against a confirmed LC — no waiting for maturity.
- Fulfil large export or supply orders without straining your cash flow.
- We manage the shipping documentation and bank presentation process for you.
- Structured around your actual trade cycle, not just your balance sheet
How It Works: A simple 5-step process to guarantee your business continuity.
- 1
Application
Submit your irrevocable, discountable LC together with the underlying commercial contract or purchase order.
- 2
Verification
Our team authenticates the LC, assesses the issuing bank and reviews the underlying trade contract.
- 3
Approval & Assignment
On approval, the LC proceeds are irrevocably assigned to DCL, and financing is disbursed to you or directly to your supplier.
- 4
Procurement & Shipment
We monitor procurement and shipment to ensure milestones and LC terms are met, while retaining control over the goods or documents until final delivery.
- 5
Settlement
Once the LC is honoured, proceeds are collected, DCL's advance and fees are settled, and the remaining balance is released to you.
Why use LC Discounting?
Who is this for?
- 1
Suppliers and traders receiving LCs from blue-chip corporates or government entities.
- 2
Export-oriented SMEs holding letters of credit from international buyers
- 3
First-time exporters needing capital to fulfil confirmed LC orders
Frequently asked questions about our LC Discounting product
What is an LC, and why does it need discounting?
A Letter of Credit (LC) is a bank’s guarantee that your buyer will pay you once you deliver against agreed terms — but that payment is only made after your goods ship and documents are presented, sometimes months later. LC Discounting gives you that cash upfront.
What size of LCs do you finance?
Facilities are typically available from Kes 5,000,000, with tenors of up to 12 months per facility and up to 180 days per transaction cycle, aligned to your shipment schedule.
Do I need to hold the LC with a specific bank?
No — we work with LCs issued or confirmed by reputable banks, and our team verifies authenticity and discountability as part of the application process.
What documents do I need?
A copy of the irrevocable LC and any amendments, the underlying commercial contract or purchase order, standard KYC documents, and recent financial statements. Our team will confirm the full checklist for your specific transaction.
Who controls the goods during the transaction?
DCL (through our appointed agent) maintains oversight of the goods, shipping documents or title until final delivery and acceptance by your buyer, which is part of what keeps the facility secure and fast to approve.
