Letter of credit has a number of disadvantages, and suffers from...

Letter of credit has a number of disadvantages, and suffers from the same issue that if one customer questions it, the trade fails.

If you are a seller, how do you assess the legitimacy of a new buyer and letter of credit,from a bank you may never have dealt with?

Escrow is faster, cheaper, available globally and licensed in many jurisdictions.

A bank letter of credit issued by a Cypriot bank, or a regional American bank (for example) might be trustworthy, or might be fraudulent, but you have to establish verification procedures anew for each bank and customer. Escrow eliminates that need as it can be used by buyers ands sellers globally.