Concept Of Trade Finance Letter of Credit: Merchant Trade Guarantee Corporation Company Limited

Merchant_tradecorp06 Nov, 2021Business

A Letter of Credit ensures the exporter to expect the complete payment as per the contract once the shipping documents are presented. It also ensures that the importer has accessible and legitimate funds to conclude the trade transaction. Therefore, the Letter of Credit provides a guarantee that the payment will be initiated by the importer once the required terms of the agreement are met.