Letters of Credit for Business Expansion
Letters of credit in many cases are the key to success in international transactions. So it’s surprising to determine the number of businessmen and, surprisingly, banks in the United States are unfamiliar or uncomfortable handling letters of credit. There may be an inclination to feel that the United States economy can be so large that one doesn’t require to take into consideration cross-border transactions. But if you’re operational, the second you already know you will find six billion people who would like to purchase and sell stuff, it seems silly never to join the party.
The documentary letter of credit serves one primary purpose: this is a payment mechanism which minimizes the possibility that certain or both sides within an import/export transaction is certain to get scammed.
We occasionally hear from companies who refuse to accept incoming letters of credit from overseas. Sometimes it is because something didn’t go well … READ MORE ...