The cost for a documentary collection is less expensive than a letter of credit because the bank Does not transfer the funds. Does not transfer the documents. Does not exchange the currency. Does not assume any risk. . . Open account payment terms is the best option for an international transaction In every situation and in every market. Only when the importer is a new company. When a long-term relationship has been established. When the exporter has been doing business for many years. . . A transferable letter of credit allows the beneficiary to transfer the to a secondary beneficiary. Letter of credit. Funds. Documents. Liability