Question

一道商务英语的问题向各位老师请教，感谢大家帮忙。

Why is L/C favored in international trade? 请用英语回答。谢谢！

Answer 1

L/C is different from the other two terms of payment (collection and remittance) in that it is based on bank creidt rather than commercial credit. In other words, banks will take up the payment liability directly, not the buyer. such method provides a high level of protection and security to both buyers and sellers engaged in the trade. the seller can be assured that payment will be made by a party independent of the buyer as far as the terms and conditions of the credit are well satisfied. the buyer gets the guarantee that his money will be released to the seller only if the bank receives the title documents required by the credit. so L/C is the safest method, it is more favored in international trade.
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Answer 2

You deliver B/L to bank,If the buyer don't pay money,they can't get the B/L.So under L/C you won't lose money and the goods at the same time.

Answer 3

Letter of Credit is one of the most popular methods for receiving payments of export proceeds. It offers maximum security to the exporter.