More and more businesses are expanding their business most especially in trading. Of course, when trading goods, owners have better opportunities in gaining better profits and improving their reputation. However, not all business owners have the finances to do so. Because of this, they usually opt for trade finance options.
As of now, there are numerous type of finance options to improve trading. These include cash advances, documentary collection, open accounts and letter of credit. And, the safest option for both seller and buyer is the letter of credit.
When using a letter of credit as a method to attain trade finances, importers and exporters need to work with a bank that will issue and confirm the guarantee of payment from the importer and exporter. Because of this, you can trade easily and efficiently. However, there are cases when individuals make mistakes in creating a letter of credit which can … Read More