Finance
Strategies for Managing Financial Risks in International Trade
Global Banking & Finance Review®
Company
Negotiating favorable payment terms and conditions can mitigate financial risks. This section offers tips on structuring payment terms that balance risk and reward, including advance payments, letters of credit, and escrow services.
A letter of credit is a financial document issued by a bank guaranteeing payment to a seller on behalf of a buyer, provided that the seller meets specific conditions outlined in the letter.
Risk management is the process of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unforeseen events.
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