Why would you use L/C if there are several simple, fast and reliable methods of money transfer available?

When you say reliable method available the word reliable is very important, if it involves the bank, and the concern governments, and if it can give the Maneuvering the control of payment to your requirement ( quality, quantity, documentation, origin, time limits, many things ) then it may be ok.
LC gives all of these things.

 LC is best because with this method, payment is guaranteed upon delivery of goods and services. Whereas other methods are, no doubt fast but are not reliable. Plus in case of LC even you can get it discounted by the bank to get payment before due date.

 

A letter of credit is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services.
L/C is the most used payment term in International Trade and I'll be fairly specific on this topic.
L/C is a perfect procedure to equally protect your interests and your buyer's interests.
Using L/C as a term of payment, you risk almost nothing and at the same time it ensures the buyer that goods are shipped before the payment has occurred.
However, you only will be paid if all terms stipulated in the L/C are met and all documents specified in the L/C strictly comply with agreed conditions and are presented in time.
The following information should be addressed when establishing a letter of credit.
1.
Beneficiary 2.
Amount 3.
Validity 4.
Seller's Bank 5.
Type of Payment Availability 6.
Desired Documents 7.
Notify Address 8.
Description of Goods 9.
Confirmation Order With international arrangements, the seller may wish to confirm the letter of credit with a bank in its country.
Before choosing L/C as a term of trade, you must understand what it is, how it works and what you can do to minimise risks involved in the L/C payment process.

dear, when you say reliable method available the word reliable is very important, if it involves the bank, and the concern governements, and if it can give the Maneuvering the control of payment to your requirement ( quality, quantity, documentation, origin, time limits, many things ) then it may be ok- LC gives all of these things.

Aside from security reasons, it is the best instrument as your funding cost is less as LC issuance cost is much low comparing to cash credit or other fund based limits.
It also helps the organisation to get additional credit from the seller at a nominal LIBOR + rate of interest.
However, you should always insist for LC's from 1st class acceptable bank or confirmed by some international bank of repute...

I would use L/C because I can have a very sympathetic customer but if he doesn't pay I will have a big problem with my boss.
And my company will also have a problem with an unpaid material, taxes, transport services, etc.
to our expenses.
One thing is friendship and another one is business.
A solution you can give to your customer is giving him a discount if he pays in advanced.
And, if he doubts, invite him when material is going to be loaded or tell him to contact with a company to check the load of the material.

to ensure availability of third party fully involved

reputable and holding the payments term till clear message to effect payment

amicable mediator to facilitate the mission of two dealers separated by location with goal but fear the consequences  if there is failure or cheating   

LCs provide for guaranteed payment by a legally bound third party. This is not provided by the other methods.