When a sight draft is used, the risk to an exporter is that a buyer can refuse the goods shipped

Name: When a sight draft is used, the risk to an exporter is that a buyer can refuse the goods shipped
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A sight draft is a payment method where the buyer must pay for the goods upon presentation of the draft or bill of exchange. If the buyer refuses to pay, the exporter can't get the payment they were expecting, hence there is a risk involved.

When a Sight Draft Is Used, the Risk to an Exporter