M5 P1_EN M5 P1_EN | Page 14

Part 1: Risk assessment in international trade Payment methods Letters of credit (L/Cs)  Advantages and risks importer's perspective: from the Advantages • • Risks The payment is done after the goods have been shipped. The importer pays after the exporter has met the terms and conditions of the letter of credit. • More expensive. • Goods not as ordered. The risks are medium / low for the importer Export platforms | Module 5: Getting paid | 14