Computer Systems Acquisition and the Use of Letters of Credit Available to Purchase

Letters of credit are commonly used today to facilitate commercial transactions of all types between wary sellers and buyers, both of whom are, for one reason or another, reluctant to initiate the exchange of money for goods. A letter of credit may be either revocable or irrevocable. There are several types of letters of credit with varied applications. Letters of credit are one of many negotiating tools that a user can employ to minimize his or her risk in a computer systems acquisition.