Economics · Banking and Trade Finance
Deferred Payment Guarantees are typically preferred over immediate payment instruments in which of the following situations?
- 1When the buyer has sufficient liquidity for immediate payment
- 2When the supplier requires immediate cash flow
- 3When the buyer needs time to arrange funds without jeopardizing supplier security✓
- 4When the supplier does not trust the bank
Correct answer
When the buyer needs time to arrange funds without jeopardizing supplier security
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