The benefits include:

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

  2. In the event the buyer defaults on payment, 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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