Riyad Bank LC Form Requirements and Common Mistakes to Avoid

Riyad Bank LC Form Explained: Documents, Fees, and Processing Time

What it is

A Letter of Credit (LC) form at Riyad Bank is the application and supporting documentation package used to open, amend, or confirm an import or export LC. It authorizes the bank to guarantee payment to the seller upon presentation of compliant documents.

Typical documents required

• Signed LC application form (bank’s standard form).
• Commercial invoice (seller’s invoice).
• Full set of shipping documents: bill of lading/airway bill, packing list, insurance policy/certificate (if applicable).
• Sales contract or proforma invoice.
• Certificate of Origin (if required by beneficiary or customs).
• Inspection certificate (if contract requires pre-shipment inspection).
• Import license/permit (where applicable under Saudi regulations).
• Company Commercial Registration (CR) and valid ID for signatories.
• Bank statements/financials (for the applicant if required by the bank’s credit assessment).
• Other documents as specified in the sales contract or by Riyad Bank (e.g., phytosanitary certificates, test reports).

Fees and charges (typical structure)

• LC issuance commission: percentage of LC amount or flat fee.
• Advising/confirmation fee: for advising to beneficiary bank or confirming the LC.
• Amendment fee: charged per amendment.
• Document handling/collection fee: for processing documents on presentation.
• Negotiation/discounting charges: if documents are negotiated or drafts discounted.
• Swift/message charges: per SWIFT message.
• Reimbursement/settlement fees: for payments via correspondent banks.
  Fees vary by LC value, risk, tenor, whether confirmation is requested, and customer relationship—expect a mix of fixed and percentage-based charges.

Processing time (usual timelines)

• LC issuance: typically same day to 2–3 business days after submission of complete application and required documents and after credit approval.
• Amendments: 1–3 business days depending on complexity and beneficiary acceptance.
• Document examination and payment: usually within 1–5 business days from receipt of compliant documents; longer if discrepancies arise.
• Confirmation by another bank: adds processing time depending on confirming bank’s procedures (1–5 business days).

Practical tips to speed approval and avoid issues

• Complete application: submit the bank’s LC form fully signed with required KYC/CR documents.
• Match documentary terms to contract: ensure required documents and wording match the sales contract precisely.
• Avoid ambiguous terms: use standard ICC UCP 600 phrasing where appropriate.
• Check fees upfront: request fee schedule from Riyad Bank to budget total costs.
• Use a checklist: include all required certificates and invoices to minimize back-and-forth.
• Communicate with beneficiary: confirm their document requirements to prevent discrepancies.

Where to get the official form and exact fees

Contact your Riyad Bank relationship manager or visit a Riyad Bank branch to obtain the bank’s LC form, current fee schedule, and specific procedural requirements.

(Updated: February 8, 2026)