Which of the following financing methods entails the greatest risk for importers?
A)Documentary collection
B)Advance payment
C)Letter of credit
D)Open account

Question

Quizplus · Accepted Answer

Advance payment entails the greatest risk for importers because they have to pay the exporter before receiving the goods, leaving them vulnerable to non-delivery or delivery of substandard goods.

Which of the Following Financing Methods Entails the Greatest Risk