Document background
A Letter of Credit 90 Days is a specialized trade finance instrument commonly used in international commerce where buyers require extended payment terms while ensuring sellers receive payment security. This document is particularly relevant in Hong Kong's dynamic trading environment, where it facilitates trade between parties who may be subject to different legal systems and commercial practices. The LC specifies the 90-day payment period from the date of document presentation, during which the issuing bank commits to pay the beneficiary, provided all document requirements are met. Governed by Hong Kong law and UCP 600, it includes crucial details such as the parties involved, payment terms, required documents, shipment specifications, and compliance requirements. This instrument is especially valuable for transactions requiring structured financing, risk mitigation, and compliance with international banking standards.
