When a letter of credit (L/C) is specifically designated "revolving letter of credit", the amount involved when utilized is reinstated, that is, the amount becomes available again without issuing another L/C and usually under the same terms and conditions.

The revolving L/C may be used in shipments of a wide range of goods to a buyer within a period of time (several months to one year usually).

Revolving LC (Non automatic) in which the renewal of limits depends upon the receipt by the negotiation bank for payment

In Automatic revolving LC limits are renewed at fixed interval irrespective of the fact whether advice of payment has been received by the negotiation bank or not.