For buyer

The advantages the letter of credit gives to the buyer/importer: 

• security because the bank will make payment against documents which comply with the terms and conditions stipulated by the buyer and the international standards
• by opening a letter of credit, the importer acknowledges that he is credit worthy and may be able to obtain more favourable payment terms (no advance payment, deferred payment)
• guarantee that the delivery of goods will be carried out according to the terms and conditions of the letter of credit  
• the buyer receives the documents he has asked for under the letter of credit at the specific time
• management tool – time of delivery, documents etc.