More & more importers-exporters endeavor to expand their business globally to better profits, grow services & sustain in the competitive market. However, not all business owners have the proper funds to do so. This is where trade finance service acts as a savior for them.
As of now, there are several types of trade finance instruments available for both buyers & sellers including Cash Advances, Bank guarantees, Documentary collections, Open Accounts and letters of credit, etc. Among all, the most common, safe, and preferred option for global traders is an international letter of credit.
It is a most popular type of trade finance that mitigates the risks of payment failure and assures exporters of being paid on time by the importer. However, if the importer defaults, the issuing bank will compensate the exporter.
However, there are cases when parties to a transaction often make mistakes while writing an LC, leading to affecting their trade finance.
In this blog, we will discuss some of the most common Letter of Credit mistakes that require to be paid attention.
Read more: https://www.emeriobanque.com/blogs/common-mistakes-to-avoid-while-writing-a-letter-of-credit
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I have always sucked at writing anything, even basic letters.
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