The Financial Instruments of Trade

Letter of Credit

Collection

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Account

• Represents 20 -25% of international trade

• Deal based credit/payment assurance

• Paper based transaction

• Manual document examination process with high discrepancy rate

• Represents 25 -30% of international trade

• Paper based transaction

• Inefficient and time consuming paper flow

• Lengthy payment cycle

• Represents 50%of international trade

• 80% non-EDI

• Trust based transaction

• Can be slow payment

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