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Outward L/C An outward l/c is opened by the goods’ importer in favour of the goods’ exporter for purpose of obtaining goods according to contract, at right time, at agreed price and at correct terms. For the importer it is important that he obtains a maximum of the advantages he may obtain by establishing a l/c, i.e. in terms of price (cash discount), correct documentation, correct delivery, correct method and routing of delivery, correct currency etc. It may also be beneficial to form the l/c in such a manner that the seller/the exporter may use the l/c as collateral for buying his rawmaterials or deliveries from subsuppliers without involving any risk for the importer. In order to facilitate the funding, the importer may, in cooperation with his bank, stipulate the time of payment, - for inst. that payment from importer to his bank (the l/c opening bank) should be 60 days from date of shipment whilst, at the same time, the exporter obtains his payment from his bank at time of shipment. It is also possible to stipulate shipment on several sets of documents, whereby the importer may pick up one set a the time - in line with his sales of the goods.