A bill of lading can function as collateral against which funds are advanced to the exporter by its local bank before final payment by the importer.

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A bill of lading is a document that serves as evidence of shipment and delivery of goods. It can be used as collateral by the exporter's bank to provide financing to the exporter until final payment is received from the importer. This is common in international trade transactions to help mitigate the risk of payment default.

A Bill of Lading Can Function as Collateral Against Which