The benefits include:

  1. You will be able to raise finance without having to put up any collateral.

  2. In the event of a protracted default by the buyer, you are not liable.

  3. You will be in a position to increase your sales as you will be selling on open credit or D/A terms. There will be no need to ask your buyer to pay in advance or to open an LC.

  4. You will get money upfront – your cash flow will improve.

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