Foreign Trade Enterprise's Risk Management Of Letter Of Credit

After China enter WTO, China's export business experienced a rapid development, Be considered as relatively safety settlement of foreign trade,letter of credit was widely used in foreign trade enterprises.it replace the commercial credit by the bank credit to undertake payment responsibility to the seller, theoretically, if the foreign trade enterprises submit the documents meet the requirements of Letter of Credit,then they will receive the payment,But,in fact, due to the characteristics of the credit itself and relatively complex business process, lack of the business ability and not attach any importance of risk management,more and more foreign trade enterprises cannot receive payment because bank claim document is discrepant, or due to the letter of credit soft clause, all these caused a lot of bad debts in foreign trade enterprises, letter of credit settlement risk becomes an urgent risk that foreign trade enterprises need to manage and control.The paper start from the present situation of letter of credit settlement risk, analyze the reason for credit settlement risk and put forward countermeasures for the letter of credit settlement risk management.