Dec 05, 2019 - 05:42 PM
That's a great question. Thanks for asking.
As far as transactions go, one of the modes of payment, both secure and cheap, is Letter of Credit.
The letter of credit is the most secure instrument available for international traders. This is the commitment made by the bank that the payment will be made to the exporter if the terms and conditions are met. The terms and conditions of the payment are explained in the required documents.
While Letter of credit ensures safe and secure transaction, there are other modes of payment that involve minimal risk but are in no way recommended by us. Open Account transaction, documentary collections and pre-payment are just some of those transaction modes. However in the light of risk involved, the best and widely accepted mode is Letter of Credit.