【Abstract】wWw.shuoshilunwen.com The letters of credit, honored as "the lifeblood of international business", is the most important method of settlement of the international trade in goods settlement, which has played a tremendous role in promoting the rapid development of international trade. However, with the improvement of the international trade and global economy, the buyer’s market is forming, and documentary settlement has faced formidable difficulties, it shows that documentary settlements can not acclimate to the new changes of international market. In recent years, the percentage of utilization of the letter of credit in the world has somewhat dropped, especially in countries Europe and the United States. There are many reasons of the decline of L/C. Systematic and comprehensive analysis of the reasons of the decline of L/C usage and problems will provide theoretical basis for the present and future development of trade settlement. Meanwhile, it also has very important significance of preventing the other malicious fraud, improving pinup documents rate, reducing dishonored, defusing risks and enterprises’using international settlement flexibly.Article fully discusses the reasons of the L/C decline with a combination of quantitative and qualitative analysis, inductive analysis and comparative analysis. Firstly, starting from the L/C status, the third part of the article studies the use of L/C of world’s countries and Chinese, and indicates the global credit downward trend, high non-payment of L/C and swindling prevalent of L/C all over the world. Secondly, the fourth part focuses on the reasons of the decline of the credit utilization rate, including the inherent limitations of credit, high risk of L/C, and the profound changes in the external environment. Finally, against this background, the fifth part studies the direction of the present and future of International payment development, that is to say the international settlement has come in multiple forms. Credit settlement is gradually declining to give in to the collection or remittance settlement; mixed settlement of international settlement is growing; new non-settlements such as forfeiting, international factoring and standby L/C develop rapidly and utilization rate of them increases dramatically.
【关键词】 信用证;使用率;福费廷;保理;备用信用证;【Key words】 L/C;percentage of utilization;forfeiting;international factoring;standby L/C;