Working Capital Management Question:
Download Questions PDF

Explain the advantages of a LC to an importer?


Advantages of Letter of Credit to an Importer:

1) Importer is guaranteed to receive timely delivery of goods.

2) It makes structuring an advantageous payment schedule easy.

3) Expediting customs clearance and ultimate delivery as the documents are received quickly.

4) It gives an assurance to the importer that the payment will only be made to the exporter upon presentation of documents
evidencing the shipment of goods.

5) It reduces the risk of non-performance of the exporter.

Download Working Capital Management Interview Questions And Answers PDF

Previous QuestionNext Question
Explain what were the main issues studied by Tandon committee to exercise control over working capital?Explain what is fund based lending? What are the various forms in which fund based lending may be made by banks?