4. Can sight LC be discounted? Sight letters of credit should not require any discount mechanism as issuing banks or confirming banks must honor at sight credits as soon as they determine that the beneficiary's presentation is complying.

Can LC be discounted?

When Can A LC Be Discounted? To fulfil financial requirements, an exporter may request for discounting of the bills backed by a received Letter of Credit. The exporter's financial institution proceeds to discount the bill and make a net payment after deducting applicable LC discounting charges.

Can sight LC be negotiated?

A credit available by sight payment can be available solely with the issuing bank (i.e. not available with a nominated bank). A credit cannot be available by negotiation without a nominated bank.