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Negotiating a letter of credit can be a cumbersome process as all the dots and dashes must be strictly adhered to in order to get payment. A shipping company will only issue a bill of lading which is one of the documents required, only after the ship has sailed. Hence the delay in getting payment. However letters of credit issued by a first class bank is a guarantee of payment and it gives comfort when the importer issues this form of payment that they are a reputable company. This announcement today is all good news.