What are the benefits of a documentary letter of credit to the seller?

  • The seller has a commitment from the buyer’s bank to pay for the shipped goods/services provided

  • The buyer can plan goods dispatch dates

  • In the case of a long shipment route, the payment may be received earlier, when the buyer receives the goods (the buyer credits the seller)

  • The seller may use documentary letter of credit as an additional measure to raise short-term financial resources

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