You are the sales director for a manufacturer in your country. From a known importer you have just received a rather large order, previously you have only received relatively small orders. The order is worth more than USD200,000 however with such a large order, the risk can also be high. After some investigation, you feel that this importers credit rating of large orders is somewhat low.

• Identify what type of export financing you would be using with this importer and provide reasons for your choice (5 marks)
• Explain the steps involved in this financing method (5marks)