WHAT IS LETTER OF CREDIT?
October 13, 2019
What is letter of credit?
Letter of credit is a promissory document that serve as a guarantee between a buyer and a seller who base in different countries. Basically, letter of credit is required when a buyer and a seller who based in different countries have no transaction history. Letter of credit is used when exporter do not have confidence in the credit worthiness of a buyer ( importer) or the importer do not totally trust the exporter.