If an importer has an intermediary guarantee payment to the exporter for the goods purchased from the exporter as soon as specific requirements are met,the guarantee provided by that intermediary is called a:

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A letter of credit is a document issued by a bank guaranteeing payment to the exporter, provided that specific requirements outlined in the letter are met. The intermediary in this case is the bank issuing the letter of credit, and their guarantee is only activated if the exporter meets the specified conditions. Therefore, the intermediary guarantee is a letter of credit. Payment guarantee is a general term and doesn't refer to a specific type of guarantee in this context, bill of lading is a shipping document, and banker's acceptance is a type of financial instrument.

If an Importer Has an Intermediary Guarantee Payment to the Exporter