Jamal Steel,a rapidly growing small steel company with annual revenues of $8 million is looking to buy a large industrial furnace from Japan that is expected to cost $2 million.The exporter wants Jamal Steel to produce a letter of credit.Jamal Steel's CFO is reluctant to do so.Instead,the CFO wants an order written by the exporter instructing Jamal Steel to pay $2 million at a specified time.In international commerce,what the CFO is asking for is known as a

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The CFO is asking for a draft, which is a written order from the exporter to the importer to pay a specified amount at a specified time. This is different from a letter of credit, which is a financial instrument issued by a bank on behalf of the importer to guarantee payment to the exporter.

Jamal Steel,a Rapidly Growing Small Steel Company with Annual Revenues