Which of the following financing methods entails the lowest risk for exporters?
A) supersedeas bond
B) advance payment
C) letter of credit
D) open account

Question

Quizplus · Accepted Answer

Advance payment is the financing method that entails the lowest risk for exporters as the payment is received prior to shipment, giving exporters complete control over the transaction. The other financing methods carry varying degrees of risk for the exporter, such as the possibility of non-payment or payment dispute.

Which of the Following Financing Methods Entails the Lowest Risk