Question

Importers' bank usually issues a ________ to importers in international transactions. sight draft letter of credit time draft bill of lading

Answer 1

Importers' bank usually issues a time draft to importers in international transactions.

A time draft is a form of payment guaranteed by the bank to be paid but is not paid in full until after the transaction is made. This helps insure someone is going to get paid but acts as a downpayment until the delivery is finished. These are commonly used in international trade transactions to stand as a "good credit" for the importer.