Trade Finance Calculators
Model the true cost of Letters of Credit, standby LCs, bank guarantees, usance interest and forfaiting - with the same day-count and fee conventions your bank uses.
Trade finance charges are notoriously opaque. A sight LC quote of 0.125% per quarter looks cheap until you add confirmation, negotiation, discrepancy, courier and reimbursement fees - often doubling the headline number. Our calculators break every line item down against the fee schedules banks actually publish, so exporters and importers can compare quotes on a like-for-like basis.
Every tool here applies the correct day-count convention per currency: ACT/360 for USD, EUR, AED, JPY and CHF, and ACT/365 for GBP, INR and other Commonwealth pairs. Usance interest, forfaiting discount and deferred-payment calculations quietly diverge by 1.4% just from that switch - enough to swing a deal.
Calculations reference UCP 600 (documentary credits), URDG 758 (demand guarantees), ISBP 745 (LC examination practice) and SWIFT MT700/MT760 field structure. Article citations appear on every tool page.
Frequently asked questions
How much does a Letter of Credit cost?
A confirmed sight LC typically costs 0.5%–1.5% of the credit amount for a 90-day tenor, split across issuance (0.125–0.25% per quarter), confirmation (0.15–0.4%), advising (~USD 100), negotiation (0.1–0.2%), courier, reimbursement and - where applicable - discrepancy fees (USD 75–150 per set). Use the LC Cost Calculator to model your specific bank's schedule.
What is the difference between a sight LC and a usance LC?
A sight LC pays the beneficiary upon presentation of compliant documents. A usance (or deferred) LC pays a fixed number of days after shipment or presentation - commonly 30, 60, 90 or 180 days. The beneficiary bears the time-value cost, which our Usance Interest Calculator models using the correct ACT/360 or ACT/365 basis for the LC currency.
Is an SBLC governed by UCP 600 or URDG 758?
Both are possible. A standby LC issued under UCP 600 behaves like a documentary credit; one issued under ISP98 or URDG 758 behaves like a demand guarantee. The choice affects presentation rules, expiry-place requirements and cure periods - we flag which regime applies on the SBLC Fee Estimator.
How does forfaiting differ from LC discounting?
Forfaiting is the without-recourse purchase of medium-term receivables (typically 6 months to 7 years), usually backed by an avalized bill of exchange or a bank guarantee. LC discounting is short-term (up to 180 days) and can be with or without recourse. The forfaiting discount rate typically embeds country, bank and tenor risk premia over LIBOR / SOFR / EURIBOR.