Have you ever used a Letter of Credit in your international transactions?
n the world of buying and selling, which encompasses just about any kind of commerce, a letter of credit is an important financial tool. Specifically, a letter of credit is a letter from a bank guaranteeing a seller will receive payment from the buyer in the correct amount and on time. The reason a letter of credit is so important is that if the buyer is unable to pay, the bank has to cover the full amount of the purchase.
When I worked for The SchwinnBicycle Company, I used a Letter of Credit to purchase bicycle parts overseas.
What is your experience with a Letter of Credit?