Financing Import

Imported goods may be bought on letters of credit or open terms. Much trade is done on trust between the buyer and seller; however as trade and companies expand and there is a lack of trust between jurisdictions and new buyers or sellers – trade instruments are used more frequently. Letters of credit are used as a type of import finance to bring in more goods to a country, with the ability to trade with a foreign entity that is not trusted. Import finance is an integral part of any growing company and this can be structured in a number of ways.

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