Top Most Asked Questions About Letters of Credit

If you’re an importer/exporter dealing in international trade, “letter of credit” is a term you encounter often. It is one of the most trusted trade finance instruments to mitigate risks in global trade transactions. Yet, the term can be confusing for many people, especially those who are seeking secure means of payment in overseas dealings. 

This article discusses some of the most common FAQs you have regarding a letter of credit service. Check out here:

1. What is a Letter of Credit?

2. How does a Letter of Credit service work?

3. How Many Types of Letters of Credit are There?

4. What is the difference between a Letter of Credit and a bank guarantee?

5. How does an LC benefit importer/exporter?

6. How much do I need to pay for an LC?

A letter of credit is a vital payment guarantee trade finance instrument that removes overseas trade risks for both the buyers & sellers. 

Originally published at https://www.axioscreditbank.com