Banking · Trade Finance
In international trade finance, 'Supplier's Credit' is best characterized as:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A process where the central bank of the exporting country provides a subsidy to the manufacturer to reduce the cost of production.
- 2A financial instrument where the importer's bank provides a contingent guarantee to the exporter's bank to ensure payment.
- 3A credit arrangement where the exporter (supplier) permits the importer to pay for the goods or services at a future specified date.✓
- 4A credit facility where an overseas financial institution or bank lends money directly to the importer to settle the export bill.
Correct answer
A credit arrangement where the exporter (supplier) permits the importer to pay for the goods or services at a future specified date.
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