An exporter who insists on cash or a letter of credit for foreign shipments is likely to lose orders to competitors from other countries that provide more favorable credit terms.

Question

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Many customers prefer to have more flexible payment options, and if an exporter is too restrictive in their payment terms, they may lose business to competitors who offer more options. This is especially true in industries and markets where competition is high.

An Exporter Who Insists on Cash or a Letter of Credit