For seller

The advantages the letter of credit gives to the seller/exporter:

• certainty of receiving payment for the goods delivered (the buyer’s bank guarantees the payment)
• the seller does not depend on buyer’s ability or desire to make payment
• payment will be effected on an agreed date
• certainty that the order is not cancelled or changed without the consent of the seller
• the seller can receive consultations in preparing shipping documents
• the letter of credit can be confirmed by seller’s bank (additional undertaking to pay to the seller)
• the seller can always obtain financing from the bank under confirmed letter of credit