Document background
The Structured Letter of Credit serves as a sophisticated financial instrument in international trade, providing security and payment assurance while accommodating complex transaction structures. This document type is particularly useful when standard letters of credit cannot address specific trading patterns or when payments need to be structured across multiple stages or milestones. Governed by Dutch law and incorporating UCP 600 rules, it offers parties the benefit of a well-established legal framework combined with flexible payment structures. The document typically includes detailed conditions for payment releases, document requirements, and specific performance metrics, making it suitable for complex international trade transactions where standard payment terms are insufficient.
