1 How could Jim use a letter of credit to ensure that he will be paid for the products he exports?

The Sports Exports Company (Ireland) produces basketballs and exports them to a distributor in the United Kingdom. It typically sends basketballs in bulk and then receives payment after the distributor receives the shipment. The business relationship with the distributor is based on trust. Although the relationship has worked thus far, Jim Logan (owner of the Sports Exports Company) is concerned about the possibility that the distributor will not make its payment.