Documentary letter of credit is a world-recognized and most protected form of international settlements. Use of a letter of credit in the domestic trade allows to benefit from all advantages of this instrument.
As a payment instrument the letter of credit is advantageous for the seller, so that upon the shipment of goods and submission of all documents in accordance with the terms and conditions of the letter of credit, it will receive funds regardless of the buyer, since in this case the bank effects payment under the letter of credit.
If you buy goods or services, the use of documentary letter of credit will allow you to protect yourself against the risk of payment in case of failure to deliver the products or to fulfill other terms and conditions provided for under the letter of credit, due to the fact that the letter of credit is an obligation of an issuing bank to make a payment only subject to compliance with all terms and conditions of the letter of credit.