LC Details

Ready to Generate

Enter your Letter of Credit details on the left to generate a tailored compliance checklist. Our engine checks for date discrepancies, country-specific rules, and UCP 600 standards.

70%

of LCs are rejected on
first presentation due
to discrepancies.

$50 - $150

Average discrepancy
fee per error charged
by banks.

LC Compliance Checker (LCCC)

What is an LC Compliance Checker?

The LC Compliance Checker is a powerful digital tool that helps exporters, importers, and traders analyze, verify, and ensure compliance of their Letters of Credit (LCs). It identifies discrepancies, checks alignment with UCP 600, and minimizes trade finance risks to secure timely, accurate international payments.

How do LC Compliance Checkers work?

The LC Compliance Checker examines LC data against UCP 600, ISBP guidelines, Incoterms, and global trade documentation standards. It scans for inconsistencies, unclear terms, ambiguous clauses, and mismatches between LC requirements and shipping documents. It then provides a detailed compliance report with actionable recommendations.

How to use Grains Global’s LCCC?

  • Enter your LC details or upload the LC document.
  • The tool processes and extracts required fields automatically.
  • Review the discrepancy report and risk indicators.
  • Compare LC instructions with sales contracts and shipment plans.
  • Make corrections and finalize compliance before document presentation.

Advantages of using Grains Global’s LC Compliance Checker

  • Automated UCP 600-based compliance detection.
  • Fast, accurate LC verification without dependency on external consultants.
  • Helps secure timely payments by minimizing discrepancies.
  • Provides practical correction suggestions to improve LC quality.
  • Suitable for exporters, importers, freight forwarders, banks, and finance teams.
  • Ensures documentation accuracy, reducing operational and financial risks.

Bonus #1: Critical Concepts Explained

1. Discrepancy Risk

A discrepancy is a mismatch between LC requirements and your documents. Even tiny errors—transposed dates or inconsistent product descriptions—can delay or deny payment. The LC Compliance Checker helps eliminate these issues before bank submission.

2. UCP 600 Compliance

UCP 600 sets international standards for Letters of Credit. Misreading a clause or misinterpreting a rule can create high financial risk. The tool ensures your LC aligns with these industry-standard practices.

3. LC Presentation Timeline

LCs require documents to be presented within a strict time window. Missing this—even by 24 hours—can result in non-payment. The tool highlights deadlines and submission risks clearly.

Bonus #2: A vs. B vs. C — Trade Finance Confusion Simplified

Letter of Credit vs. Bank Guarantee vs. Standby LC

Topic Letter of Credit (LC) Bank Guarantee (BG) Standby Letter of Credit (SBLC)
Purpose Ensures payment for goods/services Guarantees performance/default protection Serves as a backup payment method
Activation When shipment documents comply Only activated if obligations are not met Activated if primary payment method fails
Use Case Trade payments Construction, performance obligations Emergency or fallback assurance

Summary:
Many traders confuse LC, BG, and SBLC because they all involve banks and payment assurance. LCs ensure active trade payments, BGs secure performance, and SBLCs act as a safety buffer. The LC Compliance Checker helps clarify such distinctions and ensures correct compliance in each scenario.

FAQs – LC Compliance Checker

It reviews Letters of Credit for errors, discrepancies, and compliance issues to ensure smooth trade and timely banking approval.
Yes. It makes complex LC rules simple and highlights issues beginners commonly overlook.
Absolutely. It identifies mismatches early so you can fix them before submitting documents to the bank.
It follows UCP 600, ISBP guidelines, and industry best practices for document examination.
Yes, the tool works across all Incoterms and flags terms that may affect your obligations or risk exposure.