Below are a few advantages of a non-transferable letter of credit in international trade
· Non-transferable LCs follow the standard process of documentary credit issuance, making it a straightforward option.
· They are a common and widely accepted form of documentary credit, providing familiarity and ease of use.
· This control minimizes risks and ensures that funds are disbursed to the intended party.
· Non-transferable LCs generally come with lower associated costs compared to transferable LCs.
· Non-transferable LCs offer exporters a secure and reliable form of financial guarantee.