Documentary credits, as opposed to other forms of payment, such as cashier's checks, business checks and bank transfers, are an almost universally-accepted form of payment, as they are backed by known financial institutions. Thus, if you are concerned about being able to access the funds your client sends you, having them use a documentary credit rather than a traditional means of payment can make the transaction more secure all around.
A documentary credit will work in a variety of currencies, taking the guesswork out of how much you will be paid, the potential fees and other possible worries. As the bank issues the documentary credit, it will be in a fixed amount for the currency you request. Therefore, even if your local currency or your supplier/purchaser's fluctuates during the business transaction, you have the guarantee that the amount you will receive will be the agreed-upon sum.
Unlike bank transfers, Western Union payments or other means of payment, documentary credits are fully backed by banks, as they serve as parties involved in the transactions. Though banks do process bank transfers, it can be difficult to contest faulty payments. For extra security, look for a bank that has its ISO 9001 certification, allowing the payment to work with banks in a variety of countries around the world.
Several kinds of documentary credits exist, depending on your ultimate goals. Documentary credits are offered in a variety of different security levels, meaning that you can have anything from a revocable credit to a credit that is irrevocable and confirmed.