CAD and LC which one is the best choice?

CAD and LC which one is the best choice for you?

I. Simlarities between LC and CAD.

1. The payment through bank.
2. the same process to open account for payment.

                          ****CAD***   &   ***LC***

 Step 1. Sign sales contract
       CAD:  - payment term: CAD through bank.
       LC:  - payment term: LC through bank.
Step 2. Open an account for payment
      CAD: - Importer will go to their bank to ask for opening CAD deposit, Importer fills in the information of the supplier, supplier bank, amount of money and document types.( as the form of importer bank recommend)
      LC: - Importer will go to their bank to ask for opening LC payment.( I will have another writing about the LC later)
Step 3.  The bank importer and the bank exporter will contact each other to confirm all the information
Step 4. when exporter checks all the information clearly and they will inform to their bank and confirm the plan of shipment to their import.
Step 5. The supplier send his bank the documnets
Step 6. if the documents are as mentioned in the CAD agreement or LC agreement (regardless their technical content) the supplier bank will contact your bank to release the money. and send the documents.
Step 7. the bank importer will transfer the money to the supplier bank account.
3. Pay the money as mentioned documents.
- Importer all pays the cash or money or the money from their account bank when the documents are as mentioned in the CAD agreement or LC.

II. The difference between LC and CAD

1. Open account for payment.
- CAD: Trusted account or Pledge account to pay.
It maybe 100% the total value of contract or 50% or 30% or even a trusted agreement between bank of importer and Importer.
- LC: How to open LC.
Step 1: sign sales contract.