The domestic letter of credit has effectively reduced the financing risk in the traditional trade, strengthened the communication and the exchange between the two sides of the trade, greatly promoted the trust and the satisfaction of the two sides of the trade. The domestic L / C Borrowing Bank credit can provide better protection for the settlement between the buyer and the seller. The payment of the domestic trade buyer is based on the receipt of the documents submitted by the seller to the bank and in accordance with the documents, thus controlling the delivery of the goods by the seller, and eventually qualify for payment. It effectively reduces the transaction risk and ensures the economic security of both sides of trade. The domestic L / C settlement is more efficient, convenient, flexible and easy to operate. In the process of use, the domestic L / C settlement can be adjusted according to the actual needs of both sides of trade. 4 The function of domestic credit financing is more perfect. At present, the financing function of the domestic letter of credit is becoming more and more comprehensive, realizing the organic combination of many product functions, satisfying the personalized needs of both sides of trade, and speeding up the return of enterprise's loan.