The benefit of opening an L/C is that both buyers and sellers are low risks. Buyers do not need cash to deposit or place an order. This makes it possible to receive the product for sale first and then pay the proceeds from the sale of the product to settle with the bank within 90 days, helping the business not lack financial liquidity. For the seller department If the merchant receives a 100% L/C at sight (ie, an irrevocable L/C), then they can be assured that once the product has been delivered to the buyer. Will receive the money for the goods from the real buyer
Leave A Comment