Finance

Letter of Credit vs. Trade Assurance — which is safer for first-time exports?

I just secured my first international buyer for cocoa powder — a company in Dubai. They're offering two payment options: 1. **Letter of Credit (L/C)** through their bank 2. **Trade Assurance** via Alibaba (they also found us there) As a first-time exporter from Ghana, I want to minimize payment risk. Here's what I understand so far: **Letter of Credit:** - Bank-guaranteed payment ✅ - Can be expensive (1-3% of transaction value) - Complex documentation requirements - Discrepancies can delay payment **Trade Assurance:** - Platform-mediated protection - Simpler process - Limited to Alibaba platform - Dispute resolution can take time **My shipment details:** - Value: approximately $45,000 -…