The Operation Mechanism of L/C Payment Risks in International Business

DOI

10.2991/essaeme-15.2015.145How to use a DOI?

Keywords

L/C, operation mechanism, risk, international business.

Abstract

As a payment method, letter of credit is widely used around the world for its equal and high protection for both parties. While, nothing is perfect, for its specialty and its technique, it is easy for foreign trade companies to make some mistakes. Besides, the banks deal with documents but not the goods, therefore the seller has the opportunity to present fraudulent documents; meanwhile some of foreign trade companies lack experiences and knowledge about letter of credit, which may cause the other party or the bank to dishonor the payment. The risks of using L/C also exist, which has greatly threatened the payment collection of foreign trade companies. Under the theory of L/C and according to the appearances of L/C risks, the author classifies the risks into different types and puts forward some measures to evade risks of using L/C.

Copyright

© 2015, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - YanLing Tang
AU  - Peiguo Wang
AU  - Pengfei SHao
AU  - Kai Zhang
AU  - Longqun Li
PY  - 2015/10
DA  - 2015/10
TI  - The Operation Mechanism of L/C Payment Risks in International Business
BT  - Proceedings of the 2015 International Conference on Economics, Social Science, Arts, Education and Management Engineering
PB  - Atlantis Press
SP  - 676
EP  - 679
SN  - 2352-5398
UR  - https://doi.org/10.2991/essaeme-15.2015.145
DO  - 10.2991/essaeme-15.2015.145
ID  - Tang2015/10
ER  -