The major advantage of a letter of credit to the exporter is that the exporter does not receive any funds until the documents have arrived at a local port or airfield.

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The major advantage of a letter of credit to the exporter is that it provides a guarantee of payment from the importer's bank once the terms and conditions of the letter of credit are met, not necessarily tied to the arrival of goods at a local port or airfield.

The Major Advantage of a Letter of Credit to the Exporter