One of the most important considerations when it comes to international trade is how you are going to get paid for your exports. While relying on cash up front may eliminate the risk of non-payment, it limits your universe of potential customers as it can cause cash flow and other problems for buyers.
Letters of Credit are one of the most secure payment instruments available. They are recommended for use in higher-risk situations, when the importer’s credit is unacceptable or not available, when dealing with a new or less-established trade relationship or when extended payment terms are requested.
As a trade finance tool, Letters of Credit are designed to protect both exporters and importers. They can help you win business with new clients in foreign markets. This means the exporter gets a guarantee of payment while offering the importer reasonable payment terms.
This session intends to cover all the major aspects of Letter of Credit and methods of payment.