Business
Simplicity
A convenient way for the importer to know that goods have been shipped before payment will be made
Convenience
The exporter is relieved of the administrative burden of collecting the proceeds, handling correspondence and any follow-up action that needs to take place. The importer is given the opportunity to prove to the exporter that payment will be made on all shipments
Security
The goods are controlled until the importer commits to pay for the shipment. The issuing bank will be responsible to ensure that the terms and conditions of the letter of credit are adhered to
