Best Practices for Effective Use of Letters of Credit

One tried and true method for minimizing risk of nonpayment is to require that your international customer supply you with a Letter of Credit (LC) obtained from their bank.While LCs are among the most secure of payment methods for sellers, utilizing them successfully requires strict attention to detail. LCs are notoriously subject to discrepancies that can slow or even prevent payment. However, by diligently following the best practices outlined below, credit and AR pros can ensure this…