- L/C-Letter of Credit includes the following:
- B/A-Banker’s Acceptance
- T/R-Trust Receipts
- C/A-Cash Advance
- D/A-Document Acceptance
- D/P-Document Against Payment
Running a business may involve the use of trade facilities and credit facilities. To utilize these facilities, many documents must be prepared and submitted to lenders for various screenings. As stated in the article titled in Adequate Bookkeeping and Tax Returns, Financial Statements take a vital role in judgment; therefore, it should be periodically updated and prepared in a timely manner.
T/R and B/A are used in international transactions after the establishment of Letter of Credit. Whereas, D/A and D/P can be used in international transactions without the establishment of L/C. There are also other financial products like line of credit and cash advances.
In order to find the best product available for your company, followings must be taken into consideration such as interest rate, financial condition of the company, volume of international sales and the relationship with the other business party. You should also discuss with appropriate loan officers, CPAs and other professionals.