A written demand requesting payment under a letter of credit presented by the beneficiary of the letter of credit to the issuing bank. The time it takes for a beneficiary to receive payment under the letter of credit can vary and is stated in the letter of credit. When a beneficiary presents a sight draft, it is paid immediately after processing by the issuing bank. The issuing bank has a reasonable time after presentation of the required documents to process the sight draft, but it should be honored by the end of the issuing bank's seventh business day after presentation (UCC § 5-108(b)).

A time draft, by contrast, is paid on a determinable date after the beneficiary presents the draft and any other documents required by the letter of credit, such as 45 days after presentation or on a specified future date.