Documentary Letter of Credit | DirectLenderMatch

What is it?

DirectLenderMatch classifies Documentary Letter of Credit under the financing form “Trade instrument.” Its typical use in this directory is: Support payment in goods trade.

How does it work?

The structure is generally evaluated, supported, or secured using the following basis: Bank undertaking tied to shipping/documents. Exact underwriting, eligibility, terms, and availability are provider-specific and can change.

What can it be used for?

Support payment in goods trade.

What backs or supports it?

Bank undertaking tied to shipping/documents.

Why does this structure exist?

This structure provides a defined way to address the financing need described above. The provider, transaction, collateral, and underwriting context determine how the structure is implemented in practice.

Important considerations

Confirm current costs, risks, licensing, eligibility, collateral treatment, recourse, tax consequences, and availability directly with the provider and appropriate professional advisers. DirectLenderMatch does not compare rates or recommend products.

Is this actually a loan?

Financing, not a conventional loan

Workbook classification: No. Financing forms such as leases, purchases, shared equity, advances, and guarantees may solve a funding need without being conventional loans.

Verified lenders or providers

Direct bank issuer

Byline Bank

Byline Bank's current products-and-services disclosure lists letters of credit.

Official evidence page →

Last verified: 2026-08-23