What are the advantages of a LC to an exporter?

What are the advantages of a LC to an exporter?


Advantages of Letter of Credit to an Exporter:

1) Exporter is guaranteed payment upon presentation of specified documents.

2) It eliminates the risk of dealing with an unknown importer in a different country.

3) It becomes easier for the exporter to secure pre order financing.

4) Importer cannot refuse payment by raising a complaint about the goods.
What are the advantages of a LC to an importer?
Advantages of Letter of Credit to an Importer:…
What is fund based lending? What are the various forms in which fund based lending may be made by banks?
Fund based lending, where the lending bank commits the physical outflow of funds…
Explain various fund based lending methods.
a.) Loan b.) Over draft c.) Cash credit d.) Bills Purchased/ discounted e.) WC Term loans f.) Packing credit…
Post your comment