What is the primary risk an exporter faces with documentary collection?
A) bank changing terms
B) importer defaulting
C) issuing bank defaulting
D) importer failing to pay account balance

Question

Quizplus · Accepted Answer

The primary risk an exporter faces with documentary collection is the importer defaulting. This means the importer may refuse to pay or may not have the necessary funds to settle the account. The exporter relies on the importer to pay the agreed-upon amount, and if payment is not received, the exporter may suffer financial losses. Therefore, it is important for the exporter to conduct due diligence on the importer's financial position to minimize risks.

What Is the Primary Risk an Exporter Faces with Documentary