"Most trade in the world is conducted internationally, necessitating trade agreements between business partners and counterparts. Trust is paramount when agreeing on payment terms. On the riskier end of the spectrum, trade can be conducted on open account terms, where the seller bears the risk of non-payment. A less risky option is a Letter of Credit (LC). A Letter of Credit is crucial when there is an exporter and an importer, as it provides assurance of payment or prepayment before the goods are shipped." tags: financial services, tradepay service, Worldwide trade Finance