By using of a letter of credit, the buyer need not pay the seller for goods prior to shipment and the seller can obtain payment for the goods immediately upon shipment. Use of a letter of credit in the transaction reduces the uncertainties involved.

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Use of a letter of credit in the transaction thus reduces the uncertainties involved. The buyer need not pay the seller for goods prior to shipment, and the seller can obtain payment for the goods immediately upon shipment.

By Using of a Letter of Credit, the Buyer Need