Document background
The Revolving Letter of Credit is essential for ongoing trading relationships where regular shipments or services are provided over an extended period. This document is particularly useful when parties engage in repeated transactions with consistent values and terms. Under Danish law, the document must comply with both local financial regulations and international banking standards (UCP 600). It provides security to sellers by ensuring guaranteed payments through bank undertakings, while allowing buyers to maintain control over the transaction through documentary requirements. The revolving nature of the credit helps reduce administrative burden and costs associated with issuing multiple individual Letters of Credit for recurring transactions.
