Faith Acquisition Through Letter of credit in a Deal
by Harsh Varma SEO ExecutiveBusiness
relationship depends on faith or trust . Trust is the milestone of a business.
If there will be a trust in a business than your relation will be run from
generation to generations. But acquiring
trust in a business deal is not an easy task, especially if we deal with
a new customer or seller. Achieving affirmative vendor relations globally or
domestically in a world of global supply
sources helped the businesses to expand significant reward.
Trust able business relations facilitated timely purchasing opportunities for the sellers or manufacturer to export their products or services. It frankly improves fidelity that can augment working capital access by the businesses. All types of finance options help in awarding the relationships as well as payments to suppliers. Seller or owner of a business need a financial trust to trust on the customer that a he will pay a full amount within a decided time period. And customer desires to trust on seller that a quality of a good that he is purchase should be beyond his expectation.
How Letter of Credit
helps to build a Financial Trust-
A valid letter of credit needs to be issued
to acquire the trust . Following are the terms for which letter of credit is issued:-
What
is the role of banks?
In a business dealing, bank acts as a mediator provides
additional security to both parties. The letter of credit issuing bank workings
from the seller's side similarly the buyer asks the advising bank. For the
releasing of money, the seller needs to furnish obligatory documents with the
help of the advising bank to the issuer of letter of credits.
Quality
Assurance with Letter of Credit:-
Banks only verify the documents not go through the products or
services associated. So, there are some primary documents associated with Letter
of credit to assure quality of products or services. The documents that
are required is:-
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Created on Dec 31st 1969 18:00. Viewed 0 times.