Which is better, domestic factoring or domestic letter of credit?

The so-called domestic factoring generally means that domestic creditors sell their claims to domestic factoring companies at one time to recover their debts.

The so-called domestic letter of credit means that the applicant opens a letter of credit to the beneficiary through the issuing bank, and the issuing bank guarantees payment to the beneficiary after the beneficiary submits the documents that meet the requirements of the letter of credit to the issuing bank.

The so-called commercial draft refers to the unconditional payment instruction of a certain amount issued by the buyer to the seller.

Comparing the three payment methods, domestic letter of credit is the best.