Working Capital Management Question:
Download Questions PDF

Explain what are the advantages of a LC to an exporter?


Advantages of Letter of Credit to an Exporter:

1) Exporter is guaranteed payment upon presentation of specified documents.

2) It eliminates the risk of dealing with an unknown importer in a different country.

3) It becomes easier for the exporter to secure pre order financing.

4) Importer cannot refuse payment by raising a complaint about the goods.

Download Working Capital Management Interview Questions And Answers PDF

Previous QuestionNext Question
What are the different types of LC?Tell me what are bank guarantees? How do they work?