How a Business can Benefit from a Letter of Credit?

Singapore has been dubbed the merchant ‘port of call’, particularly to traders who surf between western and eastern businesses. In fact, according to a recent study, conducted and published by the World Trade Organization, it was found that the country stands at the 14^th position in the list of the largest commodities exporters around the world, and to this effect, the GDP linked to trade has peaked to a whooping ratio of 404.9.

Speaking of trading, the concept of a letter of credit (LC) is a fairly popular in Singapore. Here, any payment to the concerned exporter is assured by the financial institution that handles the buyer’s account. Since it offers a certain ease in operation, it is a much preferred mode of payment amongst trades, especially because the finance is secured prior to the shipment of the goods, and also, the respective buyer in a transition does not…