Compare L/C Upas and L/C At Sight: A Step-by-Step Guide for Businesses
11/07/2025
Let's compare in detail between L/C Upas and L/C At Sight in this article and from there make the optimal choice for your business.
Letter of credit (L/C) is an indispensable tool in international trade, helping to ensure the rights of both the buyer and seller. Among the types of L/C, L/C Upas and L/C At Sight are two commonly used forms today. So, which type of L/C should you choose? Let's explore the differences and benefits of each type to make a smart decision for your business.
Comparison of Upas L/C and At Sight L/C
To better understand how Upas L/C and At Sight L/C are different, you can refer to the detailed comparison between the differences and similarities of these two types of letters of credit as follows:
Difference between L/C Upas and L/CAt Sight
L/C Upas and L/C At Sight are two popular types of letters of credit (L/C) in international payments, however they will have the following important differences:
Characteristic
L/C At Sight
L/C Upas
Payment time
Payment upon presentation of valid documents under L/C by the seller.
Sellers receive payment immediately while buyers can delay payment to the issuing bank for up to 360 days..
Expense
There are interest charges if borrowing capital.
There is a late payment fee for UPAS L/C. This fee is usually more competitive than the cost of borrowing..
Benefits for the importer
It is a safe payment method, because the seller must deliver the goods and prepare complete documents before the buyer has to pay. pay.
Includes many different benefits such as:
- There is time to collect money before payment. The importer has more time to sell the goods before payment.
- Can negotiate a good purchase price because the seller gets paid immediately.
- Payment is deferred, thereby helping to flexibly manage capital.
- Helps importers reduce pressure on USD when payment deadlines come with exporters.
Deferred payment period up to 360 days.
Flexibility
Instant payment reduces waiting time and risk.
Provides flexibility for both buyers and sellers in negotiating payment terms.
Similarities between L/C Upas and L/C At Sight
Despite the obvious differences, there are also some similarities between L/C Upas and L/C At Sight:
Payment method by letter of credit (L/C): Both Upas L/C and At Sight L/C are forms of payment through letters of credit, in which the bank issuing the letter of credit undertakes to pay the seller when the agreed conditions are met.
Risk protectionfor both sellersand the buyer: Both forms provide risk protection for both the seller and the buyer in import and export transactions. Payment immediately after the seller fulfills the delivery terms helps to minimize the risk for the seller.
The time the seller receives the goods is alwayspay laterupon presentation of valid documents.
L/C Upas and L/C At Sight both help protect risks for both seller and buyer
When should you use L/C Upas andL/C At Sight
Choosing between Upas L/C and At Sight L/C depends on many factors, including the financial situation of the buyer and seller, the flexibility of payment, the desired level of risk and the requirements of the buyer and seller. Here are some situations when each type of L/C should be used:
When to use L/C At Sight:
The exporter needs fast delivery and immediate payment after the goods are delivered.
The importer wants to buy goods at a good price and has a lower position in negotiations with the seller.
When L/C Upas should be used:
When flexible payment timing is required between the exporter and importer, Upas L/C can be used to specify a payment timing that suits both parties.
The importer has limited finances and needs time to collect funds before payment, L/C Upas provides flexibility in payment over time.
Businesses should use L/C Upas and L/C At Sight depending on different cases.
Prestigious L/C issuance service, UPAS L/C at SeABank
If you are looking for a reputable L/C service, please refer to SeABank's L/C services. SeABank is proud to introduce its prestigious and professional Letter of Credit (L/C) service. With a reputable global network of correspondent banks and many years of experience in the financial sector, SeABank is committed to providing fast, accurate and safe L/C services to businesses.
SeABank is providing a variety of different L/C products.
Benefits of using SeABank's L/C service:
Provide a variety of products such as UPAS L/C, export L/C, domestic L/C,... to meet all transaction needs.
L/C is always issued quickly and safely thanks to a global network of reputable correspondent banks and a team of experienced experts.
Issuance procedures are simple and convenient, thereby helping businesses save time and effort.
Competitive margin rates create transaction cost optimization for businesses.
SeABank provides businesses with flexible financial support, including financing for payment of L/C documents when due.
With payment guarantees from leading reputable banks such as SeABank, businesses can further enhance their negotiating position.
SeABank's team of dedicated, knowledgeable experts will be ready to support and answer any questions businesses may have regarding L/C.
With L/C issuance service from SeABank, businesses can proactively manage cash flow and focus resources on production and business activities.
L/C issuance procedures at SeABank are very simple and quick.
Understanding the nature and differences between Upas L/C and At Sight L/C is the key to helping businesses optimize import and export activities. However, to choose and effectively use these financial tools, you need a reputable and experienced banking partner.
If you still have questions or need more in-depth advice, do not hesitate to contact SeABank via website, or via Hotline 1900.599.952 (KHDN). SeABank's team of experts is always ready to support you in making the decision that best suits your business's needs and financial situation.
