Document background
The Freely Negotiable Letter of Credit is a crucial trade finance instrument used in international commerce under Singapore jurisdiction. It combines the security of a bank guarantee with the flexibility of free negotiation at any banking institution. This document type is particularly valuable when parties require both payment security and transaction flexibility. The instrument must comply with UCP 600 rules and Singapore banking regulations, providing a structured framework for international trade payments while maintaining negotiability. It typically includes detailed specifications of required documents, payment terms, and conditions, while allowing the beneficiary maximum flexibility in choosing where to negotiate the credit.
