How do you prefer paying a local vendor 1) paying cash upfront 2) issuing a sight /deferred LC or 3) paying per credit arrangement.

I prefer3. paying per credit arrangement

First we need to define each in order to reach for the best and ideal answer as below :-

1) Cash = No as the company can use the cash for short or long terms use even if its small figures

    Which can be used in company office supply / Kitchen consumables l ect..

2) LC which will restrict values from your cash flow or even percentage of it.

3) Credit which is the best , because on the individuals use and not on company wise, we all prefer

     To pay letter , I mean to receive the Goods or services and then come pay later which is the best concept for all companies to make the best Use of Company cash flow

Finally I Choose (( Credit )) as we all use it but that's MUST be with ideal Quality as well.  

Paying as per Credit Arrangement, taking into account the cash flow and deliverables