Reply To: How can risk be reduced when participating in global trade?

We all need to accept that trade finance may mitigate the risks of with international trade by resolving differing needs of parties  An exporter will indeed want that the importer compensate for an export order in advance to avert the risk that the importer accepts the shipment but denies to payments.  A prevalent remedy for this situation is for the importer’s lender to issue a LoC to the exporter’s bank, stating that payment will be made once the supplier provides the proof of shipment.