May I ask about the revolving letter...?

Question: May I ask about the revolving letter of credit and its advantages and disadvantages for importers and exporters?
Answer:

Recirculating L / C is an irrevocable letter of credit whose value is reproduced many times as soon as the previous payment obligation is fulfilled. Recirculated letters of credit are often used in payments with familiar customers, with a stable quantity and category of goods sold for a long time. The advantage of a circular letter of credit is that the buyer only needs to open 1 L / C for both the order and the exporter does not have to wait for a new letter of credit.
Pros: The use of L / C is a secure payment method because there is a third party (credit institution / commercial bank) to pay for the buyer, so the risk of not paying the seller It is very difficult because opening a letter of credit is a complicated witnessing process itself
Disadvantage: Periodic L / C is quite long (several years), and periodic L / C is a non-cancelable (irrevocable) L / C, so using periodic L / C should also accept the Company's financial risks, while still having to import goods when the situation of enterprises or markets causes instability
Bài viết khác
EXPORT-IMPORT PROCEDURE FOR PRINTER AND PRINTER INK 29/03/2021 15:14
Vietnam is a growing economy with demands for printing products growing high. While demand from the market shows that the consumption of printing products, especially for publication and education is growing strong, demand for printer and printer ink from enterprises working in the printing industry is also growing. Seeing such growth, many enterprises working in the commercial sector and printing sector, have risen their interest for importing printer and printer ink to Vietnam to satisfy the internal market. Alongside importing, some local enterprises have joined in the production sector for printer and printer ink. These companies alongside from focusing on the internal market, maybe will be more interested on exporting their products to international market when the economy grows better.
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