Requirements:
Your local bank (the issuer of the L/C) should preferably have a Standard & Poor’s rating of at least BBB+.
Depending on the assets of the company, your local bank might ask you to pledge some of your goods as security.
The Uniform Customs and Practice for Documentary Credits provide a secure legal environment for both parties involved in the deal.
Advantages:
The process of issuing the L/C should not take more than one or two weeks (depending on the country, and their corresponding Central Bank).
The financing costs of the operation might be lower than the ones provided by your local bank, since interest rates in the European Union are very possibly lower than in your own country.
