What Is Letter Of Credit? How Do You Get One?

[Good-Person]

When it comes to finance, a letter of credit plays a really crucial role. A letter of credit is a kind of document which plays an important role when it comes to exporting and importing items. So, what is it and how to get one?

 

[Planbizzle]

Normally, a letter of credit is issued on the buyer's account, and this letter of credit is secured by the buyer's credibility. Given that it ensures that the purchaser will be ready to purchase the goods or services, the letter of credit acts as insurance for the vendor.

 

[Good-Person]

Normally, a letter of credit is issued on the buyer's account, and this letter of credit is secured by the buyer's credibility. Given that it ensures that the purchaser will be ready to purchase the goods or services, the letter of credit acts as insurance for the vendor.

Well, the government in here is now issuing the letter of credit to many businessmen because now they have received some funds from international financial organisations. This is a great thing for economy.

 

[Kane]

A letter of Credit or LC in a short term is a bank guarantee that a buyer gives to the seller usually when buying goods and items from foreign countries. THis is must when you are in import and export business

 

[Jonaville1]

Normally, a letter of credit is issued on the buyer's account, and this letter of credit is secured by the buyer's credibility. Given that it ensures that the purchaser will be ready to purchase the goods or services, the letter of credit acts as insurance for the vendor.

I am not very familiar with this but I was able to pick some things from it and it is being useful. I never knew the meaning of a letter of credit. Nice information

 

[Emmy]

Letter of credit is issued in favour of the buyer so as to serve as letter of credibility to be able to be eligible for purchase of goods and services. It actually creates trust between sellers and buyers.

 

[Busybee]

This is basically used in international trade where the bank of the buyer will issue a letter assuring the exporter that he would receive the payment once the buyer receives his goods. This kind of protects both the importers and exporters.