White Paper

4 Pages
  • 4 Pages

Why Letters of Credit Might Not Get Paid


Ultimately, Letters of Credit are necessary risks under certain circumstances.

Thousands of companies rely on commercial Letters of Credit each year to ensure payment. Ideally, a Letter of Credit works by passing the payment requirement for a service or sale to the bank issuing the Letter. This arrangement has distinct advantages for both the seller and the buyer, but some sellers deal with serious nonpayment issues when accepting Letters of Credit. In most cases, fundamental misunderstandings of the usage and terms of an LC cause the nonpayment. Download this white paper to understand the purpose of letters of credit and how to use them efficiently.

Learning Objectives

  • Determine when and why letters of credit are necessary.
  • Understand the inherent dangers of a letter of credit.
  • Review the legal complexities of letters of credit.
  • Learn how to avoid some of the risks.



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